A truck costing $56,000 has accumulated depreciation of $52,000. The truck is scrapped for $700. The journal entry to record this transaction is to:

A) debit Cash for $700, debit Truck for $52,000, debit Loss on Disposal for $3,300 and credit Accumulated Depreciation – Truck for $56,000.
B) debit Cash for $700, debit Accumulated Depreciation – Truck for $52,000, debit Loss on Disposal for $3,300 and credit Truck for $56,000.
C) debit Accumulated Depreciation – Truck for $52,000, debit Loss on Disposal $4,000, and credit Truck for $56,000.
D) debit Cash for $700, debit Loss on Disposal for $55,300 and credit Truck for $56,000.


B) debit Cash for $700, debit Accumulated Depreciation – Truck for $52,000, debit Loss on Disposal for $3,300 and credit Truck for $56,000.
Explanation: accumulated depreciation + scrap - cost = loss on disposal; ex: $52,000 + $700 - $56,000 = ($3,300)

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