When a Company Sells Equipment for Cash on a Date

Multiple Choice

When a company sells equipment for cash on a date other than the last day of the accounting period,it must:

A) record depreciation expense for the entire accounting period during which the equipment is sold.
B) record the disposal by reducing equipment and increasing revenue;a gain or loss is reported if the decrease and increase are not equal.
C) first record depreciation expense for the period up to the date of sale,and then record the disposal by decreasing both equipment and accumulated depreciation while increasing cash;a gain or loss is reported if total assets increase or decrease.
D) record accumulated depreciation for the entire current accounting period.