Multiple Choice
On December 31, 2017, Plattsville Plastics recently decided to dispose of an extrusion machine. The original cost was $461,000 and accumulated depreciation was $310,566. On December 31, 2017, the fair value of the machine was determined to be $111,000. On December 31, 2018, the fair value of the machine was determined to be $167,000. Which of the following would be included in a related adjusting entry on December 31, 2018?
A) credit Gain on Machine Held for Disposal for $167,000
B) credit Gain on Machine Held for Disposal for $56,000
C) credit Gain on Machine Held for Disposal for $39,434
D) No adjusting entry is required.
Correct Answer:
Verified
Correct Answer:
Verified
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