Selected Information from Hsu Inc

question 6

Multiple Choice

Selected information from Hsu Inc. is provided below for the years ending December 31, 2009 and 2008. During 2009, depreciation expense was recorded. New equipment was acquired for cash. Old equipment which was 70% depreciated with an original cost of $26,000 was sold for a gain of $4,000. For how much was the equipment sold?

• A) $11,800
• B) $5,000
• C) $3,800
• D) $31,000

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Definitions:

Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy.

Petroleum

A naturally occurring, yellowish-black liquid found beneath the Earth's surface, used primarily as a fuel source in its refined form.

Commercial Energy

Energy that is produced and sold for profit, including fossil fuels, nuclear, and renewable energy sources used in industrial, commercial, and residential settings.

United States

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