On January 1, 2011, XYZ Corporation Sold a Piece of Equipment

question 52

Multiple Choice

On January 1, 2011, XYZ Corporation sold a piece of equipment for $30,000 which it had used for several years. The equipment had cost $45,000, and its accumulated depreciation amounted to $20,000 at the time of the sale. What are the net effects on the accounting equation of selling the equipment?

• A) Assets and equity increase $30,000
• B) Assets decrease and equity increases $5,000.
• C) Assets and equity increase $5,000.
• D) Assets and equity decrease $5,000.

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Definitions:

Realistically Remembers

The act of accurately and objectively recalling past events without distortion by personal feelings or interpretations.

Terminally Ill Patient

A patient who is suffering from a disease or condition that is incurable and is expected to lead to the patient's death.

Mention Death

Bringing up the topic of death, which may be relevant in contexts such as illness, therapy sessions, or discussions about life and mortality.

Grieving

The emotional process of coping with a loss, which can include feelings of sadness, anger, and acceptance.