A Company Sells a Plant Asset That Originally Cost $225,000

question 44

Multiple Choice

A company sells a plant asset that originally cost $225,000 for $75,000 on December 31, 2014. The accumulated depreciation account had a balance of $90,000 after the current year's depreciation of $22,500 had been recorded. The company should recognize a

• A) $150,000 loss on disposal.
• B) $60,000 gain on disposal.
• C) $60,000 loss on disposal.
• D) $37,500 loss on disposal.

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Definitions:

Invasions

The act of entering a place in large numbers, especially when involving a change in the ecosystem by non-native species, or the act of military forces entering another country.

Prairie Pothole Region

An area in North America characterized by thousands of shallow wetlands, significant to North American migratory waterfowl.

Wetlands

Areas of land that are saturated with water, either permanently or seasonally, characterized by distinct ecosystems with specific types of plants and animals.

Interactions

The ways in which organisms, objects, or individuals influence each other within their environment or system, often determining the dynamics of the system.