Your Company Owned Equipment with a Book Value of $120,000

Multiple Choice

Your company owned equipment with a book value of $120,000 that was sold during this accounting period for $30,500 in cash,and purchased new equipment for $148,000.Your company would record:

A) a credit of $30,500 and a debit of $148,000 to the cash account for a net cash outflow of $117,500.
B) a debit of $148,000 and a credit of $89,500 to the cash account for a net cash outflow of $58,500.
C) a debit of $30,500 and a credit of $148,000 to the cash account for a net cash outflow of $117,500.
D) a debit of $89,500 and a credit of $148,000 to the cash account for a net cash outflow of $58,500.