An Asset with an Original Cost of $75,000, a Residual

question 40

Short Answer

An asset with an original cost of $75,000, a residual value of $7,500 and a useful life of 5 years is given away without any consideration at the end of year five.The entry to record this is: $\begin{array} { l } \text { a dr. Accumulated amortization}\\\quad \text { dr. Loss on disposal}\\\quad\quad\quad\quad \text {cr. Capital asset}\\ \text { b. dr. Accumulated amortization}\\\quad\quad\quad\quad \text { cr. Gain on disposal}\\ \quad\quad\quad\quad\text { cr. Capital asset}\\ \text {c. dr. Capital asset }\\ \quad\quad\quad\quad\text { cr. Accumulated amortization}\\ \text {d. dr. Accumulated Amortization }\\ \quad\quad\quad\quad\text { cr. Capital Asset}\\\end{array}$

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Definitions:

Response Deprivation Theory

The idea that when a contingency restricts access to an activity, it causes that activity to become a reinforcement.

Premack's Principle

A principle stating that more probable behaviors can serve as reinforcers for less probable behaviors.

High-Probability Activities

Activities that an individual is highly likely to engage in, often used in behavior modification by allowing access to them as a reward.

Reinforcing

Strengthening a behavior by providing a consequence that will increase the likelihood of the behavior's recurrence.