Question 9: A company experiences a $50,000 loss on the disposal of equipment with a book value of $150,000. Provide a comprehensive explanation of the journal entries and subsequent adjustments to record the disposal of equipment and recognize the loss.

Requirements:

1. Record the journal entry to recognize the disposal of equipment and remove it from the company's books.
2. Post the journal entry to the Equipment and Accumulated Depreciation accounts in the ledger.
3. Calculate the loss on disposal based on the difference between the equipment's book value and the disposal proceeds.
4. Record the journal entry to recognize the loss on disposal.
5. Post the journal entry to the Loss on Disposal of Equipment account in the ledger.
6. Analyze how these transactions affect the company's balance sheet and income statement.
7. Discuss the reasons for disposing of equipment and the impact on the company's operations.
8. Explain the accounting treatment for gains and losses on the disposal of assets.
9. Evaluate the implications of asset disposals on a company's financial position and performance.
10. Illustrate how asset disposals are disclosed in financial statements and footnotes.