Respuesta :
Farmer Company sold a piece of equipment for $6,000 so therefore option B is correct. (3,000)NA(3,000)
What is a Accumulated depreciation on a balance sheet?
The amount of depreciation recorded as an expense on the income statement from the time the company bought the asset to the balance sheet date is represented by the accumulated depreciation figure on the balance sheet. There is a "original basis" (the original cost) and a "accumulated depreciation" for each asset you currently own (essentially, how much value it has lost, which is now considered an expense on your books).
When you record depreciation on a tangible asset, you credit accumulated depreciation for the same amount while debiting depreciation expense. This allows you to see how much of an asset has been written off and gives you an estimate of how much longer it will be useful. It also reveals the asset's net book value on the balance sheet.
Is accumulated depreciation an asset?
Accumulated depreciation, also referred to as a long-term contra asset account, is an asset account having a credit balance that appears on the balance sheet under the heading Property, Plant, and Equipment. the sum of money set aside from the cost of purchasing a long-term asset. Depreciation that has accumulated over time is not an asset because the balances in the account will not generate income for the company over a number of reporting periods. In reality, accumulated depreciation is a measure of how much economic value has been lost over time.
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