Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a:
a. loss on disposal of $40,000.
b. gain on disposal of $40,000.
c. loss on disposal of $10,000.
d. gain on disposal of $10,000.
Ans: c. loss on disposal of $10,000.
Business
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