Multiple Choice
An asset's carrying amount is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record:
A) Neither a gain or loss is recognized on this type of transaction.
B) A gain on sale of $2,000.
C) A loss on sale of $1,000.
D) A gain on sale of $1,000.
E) A loss on sale of $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: Amortization is the process of allocating the
Q37: _ are revenue expenditures to keep an
Q38: Property, plant and equipment are used in
Q39: A company purchased mining property for $1,560,000.
Q42: A company exchanged its used machine for
Q43: On January 1, a machine costing $260,000
Q44: An item of property, plant and equipment's
Q45: Depreciation expense is calculated using estimates of
Q67: Explain the difference between revenue expenditures and
Q245: Natural resources are assets that include standing