Which of the following entries correctly reflects the retirement of an asset with a salvage value of \$4,000 and no proceeds?

• A. Debit Equipment; Credit Accumulated Depreciation; Credit Loss on Disposal \$4,000
• B. Debit Equipment \$4,000; Credit Accumulated Depreciation \$4,000
• C. Debit Cash \$4,000; Credit Equipment \$4,000
• D. Debit Accumulated Depreciation; Credit Equipment; Debit Loss on Disposal \$4,000

Answer: (D)