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On May 1, 2020, Pinkley Company sells office furniture for 70,000 cash. The office furniture originally cost 140,000 when purchased on January 1, 2014. Depreciation
On May 1, 2020, Pinkley Company sells office furniture for 70,000 cash. The office furniture originally cost 140,000 when purchased on January 1, 2014. Depreciation is recorded by the straight-line method over 10 years with a residual value of 14,000. What should be the journal entry for disposal by sale Select one: Cash O a. Accumulated depreciation Loss on disposal Office equipment 70,000 60,200 9,800 140,000 70,000 80,850 Cash Accumulated depreciation O b. Gain on disposal Office furniture 10,850 140,000 70.000 79,800 Cash Accumulated Depreciation O c. Office furniture Gain on disposal 140,000 9,800 Cash Accumulated depreciation Loss on disposal Office equipment 70,000 67,200 2,800 O d. 140,000
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