A Company Sells a Plant Asset Which Originally Cost $180,000

question 77

Multiple Choice

A company sells a plant asset which originally cost $180,000 for $60,000 on December 31, 2010. The Accumulated Depreciation account had a balance of $72,000 after the current year's depreciation of $18,000 had been recorded. The company should recognize a

• A) $120,000 loss on disposal.
• B) $48,000 gain on disposal.
• C) $48,000 loss on disposal.
• D) $30,000 loss on disposal.

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Definitions:

Votes Entitled

The number of votes a shareholder or member is authorized to cast in a company's or organization's decision-making process.

Illegal Distribution

involves the unauthorized selling or distribution of goods or services, often violating copyright laws or regulatory statutes.

Liable

Being legally responsible or accountable, often in the context of owing compensation for harm or damage caused.

Dividend

A portion of a company's earnings distributed to its shareholders, usually in the form of cash or additional shares.