Question

Use the information above to answer the following question. Assume the company decides to sell the computer system on July 1, 2017 for $1,000,000. Which of the following statements about the journal entry (or entries) required on July 1 is not correct?

A) The depreciation expense must be recorded for 6 months, January 1 to July 1.

B) The Equipment asset account must be credited for $1,600,000 to record the sale.

C) Accumulated Depreciation is debited for $612,500 in the entry to record the sale.

D) The loss on the sale is $12,500.

Answer

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