Equipment That Originally Cost $900 with No Salvage Value Has

question 122

Multiple Choice

Equipment that originally cost $900 with no salvage value has accumulated depreciation of $700.The equipment is discarded.The transaction to record the discarding of the equipment would result in a:

• A)loss of $900.
• B)gain of $900.
• C)loss of $200.
• D)loss of $700.

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Definitions:

Back-end Ratio

The back-end ratio measures a person's total debt payments as a percentage of their income, commonly used by lenders to assess borrowing capacity.

Pre-approved

An initial approval indicating a customer may qualify for certain loans or credit cards, usually based on a preliminary credit information review.

Gross Annual Income

Gross Annual Income refers to the total amount of income earned in a year before any deductions are made, such as taxes and retirement contributions.

Down Payment

An initial payment made when something is bought on credit, often expressed as a percentage of the total purchase price.