A Company Sells a Long-Lived Asset Which Originally Cost $150,000

question 131

Multiple Choice

A company sells a long-lived asset which originally cost $150,000 for $50,000 on December 31, 2017. The accumulated depreciation account had a balance of $60,000 after the current year's depreciation of $15,000 had been recorded. The company should recognize a

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

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Definitions:

Transfer RNA

A type of RNA molecule that helps decode a messenger RNA (mRNA) sequence into a protein during the process of translation.

Genetic Information

The instructions encoded in the DNA and genes of an organism for development, functioning, growth, and reproduction.

Nucleus

A membrane-bound organelle found in eukaryotic cells, containing most of the cell's genetic material.

Chromosome

The structure that transmits the genetic material from one generation to the next; composed of condensed chromatin; each species has a particular number of chromosomes that is passed on to the next generation.