Touch Tronix Company Has a Piece of Manufacturing Equipment That

Multiple Choice

Touch Tronix Company has a piece of manufacturing equipment that has become obsolete.On December 21, 2011, the company discards the equipment which has a historical cost of $500,000 and accumulated depreciation of $460,000.What is the net impact on the long-term assets of Touch Tronix Company on its December 31, 2011 statement of financial position?

A) Decrease of $500,000.
B) Increase of $40,000.
C) Decrease of $40,000.
D) Decrease of $960,000.