Marker Bros. owns a unique piece of equipment that is worn out and fully depreciated. The salvage value had been estimated to be $500. The production manager threw it in the back of a truck, took it to the junkyard, and dropped it off for free to them. The original cost was $5,000. Which of the following would you propose to record the disposition of the asset.
Box 1: Select the best answer
debit accumulated depreciation $4,500, debit loss on disposition $500, credit equipment $5,000