15. A company sells a plant asset which originally cost $150,000 for $50,000 on December 31, 2005. The Accumulated Depreciation account had a balance of $60,000 after the current year's depreciation of $15,000 had been recorded. The compan FOR ANY CREDIT) a. $100,000 loss on disposal. b. $40,000 gain on disposal. c. $40,000 loss on disposal. d. $25,000 loss on disposal. y should recognize a (SHOW CALCULATION 16. On July 1, 2005, Meed Kennels sells equipment for $44,00o. The equipment originally cost $120,000, had an estimated 5-year life and an expected salvage value of $20,000. The accumulated depreciation account had a balance of $70,000 on January 1, 2005, using the straight- line method. The gain or loss on disposal is (SHOW CALCULATION FOR ANY CREDIT a. $6,000 gain. b. $4,000 loss. c. $6,000 loss. d. $4,000 gain. A loss on disposal of a plant asset is reported in the financial statements a. in the Other Revenues and Gains section of the income statement b. in the other Expenses and Losses section of the income statement. c. as a direct increase to the capital account on the balance sheet. d. as a direct decrease to the capital account on the balance sheet. 17. Adjunct Associate Professor. Raymond G. Hohman, Jr