Question 20 2 pts sanders corporation sold equipment with a cost of $250,000 and accumulated depreciation of $180,000 for $90,000. the journal entry to record the sale of the asset would not include which of the following? debit to accumulated

General
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question 20 2 pts sanders corporation sold equipment with a cost of $250,000 and accumulated depreciation of $180,000 for $90,000. the journal entry to record the sale of the asset would not include which of the following? debit to accumulated depreciation for $180,000 debit to cash for $90,000 e credit to gain on sale of asset for $20,000 credit to equipment for $70,000

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What journal entry would be made to record the sale of the asset by Sanders Corporation?

Answer:
To record the sale of the equipment by Sanders Corporation, the following journal entry would be made:

  1. Debit to Cash for $90,000: This entry reflects the cash received from the sale of the asset.

  2. Debit to Accumulated Depreciation for $180,000: This entry removes the accumulated depreciation associated with the sold equipment, clearing out the depreciation expense.

  3. Credit to Equipment for $250,000: This entry removes the cost of the equipment from the books.

  4. Credit to Gain on Sale of Asset for $20,000: This entry records the gain on the sale, which is calculated as the selling price ($90,000) minus the carrying amount ($70,000).

Therefore, the journal entry would not include a debit to Accumulated Depreciation for $180,000 as this account is credited to eliminate the accumulated depreciation but not debited as part of the sale transaction.