A Company Sells a Plant Asset That Originally Cost $360,000

question 191

Multiple Choice

A company sells a plant asset that originally cost $360,000 for $120,000 on December 31, 2017. The accumulated depreciation account had a balance of $180,000 after the current year's depreciation of $30,000 had been recorded. The company should recognize a

• A)$60,000 loss on disposal.
• B)$40,000 gain on disposal.
• C)$120,000 loss on disposal.
• D)$120,000 gain on disposal.

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Definitions:

Lateral Geniculate Nucleus

A significant relay center in the thalamus for the visual pathway, receiving major inputs from the retina and sending outputs to the visual cortex.

Olfaction

The sense of smell, which is the detection and identification of chemicals in the air by the olfactory system.

Vision

The ability to interpret the surrounding environment by processing information contained in visible light.

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to various areas of the brain.