An Asset with an Original Cost of $75,000,a Residual Value

question 56

Multiple Choice

An asset with an original cost of $75,000,a residual value of $7,500,and a useful life of 5 years is given away without any consideration at the end of year five.The entry to record this is

• A)Dr.Accumulated depreciation,Dr.Loss on disposal,Cr.Long-Term asset.
• B)Dr.Accumulated depreciation,Cr.Gain on disposal,Cr.Long-Term asset.
• C)Dr.Long-Term asset,Cr.Accumulated depreciation.
• D)Dr.Accumulated depreciation,Cr.Long-Term Asset.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Incidental Costs

Minor or secondary expenses that occur during a primary activity or transaction, often unpredictable.