Marks Consulting Purchased Equipment Costing $45,000 on January 1,Year 1

question 39

Multiple Choice

Marks Consulting purchased equipment costing $45,000 on January 1,Year 1.The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years.Straight-line depreciation is used.If the equipment is sold on July 1,Year 5 for $20,000,the journal entry to record the sale will include a:

• A)Credit to cash for $20,000.
• B)Debit to accumulated depreciation for $22,500.
• C)Debit to loss on sale for $10,000.
• D)Credit to loss on sale for $10,000.
• E)Debit to gain on sale for $2,500.

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Definitions:

Endoscopy

A medical procedure that allows a doctor to inspect and observe the inside of the body without making large incisions, using an instrument called an endoscope.

Nervous

Pertaining to the nervous system, which includes the brain, spinal cord, and peripheral nerves, or feeling anxious and apprehensive.

Steroid

A type of organic molecule with a characteristic molecular structure containing four rings, used in medicine to reduce inflammation and as hormones in the body.

IgM

Immunoglobulin M, a type of antibody that is produced initially in response to an antigen and indicates a current infection in the body.