Answer:
a.loss of $4,725
Explanation:
As the asset has a historical cost of $14,725 and accumulated depreciation = $10,000, its carrying value shall be : $4,725
That is carrying value = Historical cost - Accumulated depreciation = $14,725 - $10,000
As it is provided that the asset is discarded with $0 market value, there is no amount received when the asset is discarded.
Thus, Sale price = $0
Carrying value = $4,725
Thus, loss = Sale price - Carrying value = $0 - $4,725
Loss = $4,725 as the value is negative.
Therefore, option a is correct.
