If a Fixed Asset with an Original Cost of $18,000

question 27

Multiple Choice

If a fixed asset with an original cost of $18,000 and accumulated depreciation of $2,000 is sold for $15,000, the company must:

• A) recognize a loss on the income statement under other expenses.
• B) recognize a loss on the income statement under operating expenses.
• C) recognize a gain on the income statement under other revenues.
• D) recognize a gain on the income statement under revenues.

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Definitions:

Union Of Events

The set of outcomes that belong to either one or both of two or more events in probability theory.

Sample Points

Sample points are specific values or instances selected from a population or a set, which represent a portion of the population for analysis.

Independent Events

Events whose outcome or occurrence does not affect each other.

P(A ∩ B)

The probability of the intersection of events A and B, indicating the likelihood of both events occurring simultaneously.