When a Depreciable Asset Is Sold

question 12

Multiple Choice

When a depreciable asset is sold:

• A)a gain arises if the sales proceeds exceed the net book value.
• B)a loss arises if the sales proceeds exceed the net book value.
• C)any cash received results in a gain.
• D)depreciation expense is adjusted so there is no gain or loss.

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Definitions:

Seventeenth-Century Migrants

Individuals or groups who relocated, often across national boundaries, during the 1600s, frequently for reasons such as religious freedom, economic opportunity, or as a result of being transported as convicts or indentured servants.

Lower-Class Men

Individuals from the bottom socio-economic tier of society, often characterized by lower income and limited access to resources.

Headright System

A land-grant policy that promised fifty acres to any colonist who could afford passage to Virginia, as well as fifty more for any accompanying servants. The headright policy was eventually expanded to include any colonists—and was also adopted in other colonies.

Large Estates

Expansive areas of land, usually encompassing significant homes or mansions, often associated with wealth and aristocracy.