what-is-the-impact-on-the-income-statement-if-a-company-does-not-receive-the-ant

Question

What is the impact on the income statement if a company does not receive the anticipated salvage value of $5,000 for a retired asset?

Accepted Answer

A loss of $5,000 is recorded.

Answer

An expense of $5,000 is recorded.

Answer

No impact on the income statement.

Answer

A gain of $5,000 is recorded.

What is the impact on the income statement if a company does not receive the anticipated salvage value of \$5,000 for a retired asset?