A Company Sells a Long-Lived Asset That Originally Cost $200,000

question 141

Multiple Choice

A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31, 2011. The accumulated depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded. The company should recognize a:

• A) $100,000 loss on sale.
• B) $40,000 gain on sale.
• C) $40,000 loss on sale.
• D) $25,000 loss on sale.

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Definitions:

Genotype

An individual’s collection of genes that contains instructions for all physical and psychological characteristics, including hair, eye color, personality, health, and behavior.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time due to the fertilization of two different eggs by two different sperm.

Monozygotic Twins

Twins that are genetically identical because they were formed from a single zygote splitting into two.

Fraternal Twin

Siblings born at the same time who have developed from two different eggs fertilized by two different sperm cells, making them genetically unique from each other.