Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. The journal entry to be made in the special revenue fund will include:

A. A credit to Equipment for $40,000.
B. A debit to Cash for $15,000.
C. A credit to Other Financing Sources for $5,000.
D. A debit to Accumulated Depreciation for $30,000.


Answer: B

Business

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