Which of the Following Items Is Included in the Journal

question 62

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price equal to its carrying amount?

• A)A credit to Accumulated depreciation
• B)A debit to Equipment for its carrying amount
• C)A debit to Loss on sale of equipment
• D)A credit to Equipment for its original cost

---

Definitions:

Crown Patent

A legal document issued by the Crown (government) granting rights or land to an individual or entity in Canada.

Fee Simple

The broadest form of property ownership where the owner has unrestricted rights to the property, including the rights to use, sell, or inherit it.

Life Estate

A legal arrangement in real estate where an individual is granted ownership rights and usage of a property for the duration of their life, after which the property reverts to another designated person or returns to the original owner.

Right Of Way

An entitlement, conferred either by established custom or by explicit permission, allowing passage over a certain course within another's territory or land.