In 2022 Blanchard Corporation Has Plant Equipment That Originally Cost

Multiple Choice

In 2022 Blanchard Corporation has plant equipment that originally cost $120000 and has accumulated depreciation of $48000.A new processing technique has rendered the equipment obsolete so it is retired.Which of the following should Blanchard do to record the retirement of the equipment?

A) Increase to Loss on Disposal and decrease to Equipment for $72000.
B) Decrease to Accumulated Depreciation - Equipment for $48000 increase to Loss on Disposal for $72000 and decrease to Equipment for $120000.
C) Increase to Loss on Disposal and Accumulated Depreciation - Equipment for $72000.
D) Increase to Equipment for $120000 increase to Accumulated Depreciation - Equipment for $48000 and a decrease to Loss on Disposal for $72000.