On January 1, 2011, Benson, Inc. purchased a machine for $37,200. Benson uses straight-line depreciation and estimates an eight-year useful life and a $1,200 salvage value. On December 31, 2018, Benson cannot locate a buyer for the used machine so it is scrapped. In recording the machine retirement, Benson should reflect:
A. No gain or loss
B. A $1,200 gain
C. A $1,200 loss
D. A $28,800 loss
E. None of the above
Ans: C. A $1,200 loss
Business
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