A company sells a machine that cost $7,000 for $500 cash. The machine had $6,500 accumulated depreciation.

A company owns an asset that Is fully depreciated. The asset is no longer being used in operations
and has no market value. The company has decided to ___ the asset by recording an entry to
remove it from the balance sheet.

discard
depreciate
take a loss on


Straight-line depreciation is calculated by taking cost - (salvage/market)salvage value.


Depreciation is the process of allocating the cost of a plant asset to expense in the accounting periods
benefiting from its use.



Brice Co. purchases land in order to drill oil. This land would be classified as a{n) ___ on the
balance sheet.

plant asset

intangible asset

current asset

natural resource

A company sells a machine that cost $7,000 for $500 cash. The machine had $6,500 accumulated

depreciation. The entry to record this transaction will Include which of the following entries? (Check

all that apply.)