When a Plant Asset Is Sold, Its Original Cost and Its

question 2

Multiple Choice

When a plant asset is sold, its original cost and its:

• A)market value must be removed from the accounting records.
• B)accumulated depreciation must be removed from the accounting records.
• C)salvage value must be expensed immediately.
• D)related maintenance costs must be transferred to the income statement immediately.

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Definitions:

Break-even

The point at which total revenues equal total costs, resulting in no net profit or loss for a business.

Monthly Dollar Sales

The total revenue generated from sales in a particular month measured in dollars.

Selling Price

The amount of money a customer pays to purchase a product or service.

Break-even

The point at which total costs and total income are equal, resulting in neither profit nor loss for a business.