When a Company Sells Machinery at a Price Equal to Its

question 34

Multiple Choice

When a company sells machinery at a price equal to its book value,this transaction will be recorded with an entry that would include which of the following?

• A) Dr Cash and accumulated depreciation\(\quad \) \(\quad \) \(\quad \) Cr Machinery
• B) Dr Machinery\(\quad \) \(\quad \) \(\quad \) \(\quad \) \(\quad \) \(\quad \) \(\quad \) Cr Cash and accumulated depreciation
• C) Dr Cash and machinery\(\quad \) \(\quad \) \(\quad \) \(\quad \) Cr Accumulated depreciation
• D) Dr Cash and depreciation expense\(\quad \) \(\quad \) Cr Accumulated depreciation

---

Definitions:

Interest Rates

The cost of borrowing money, often expressed as a percentage of the amount borrowed, which can influence consumer spending and economic growth.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without deteriorating in value.

Medium of Exchange

An instrument used to facilitate the sale, purchase, or trade of goods between parties.

Small Denomination CDs

Certificates of Deposit that are issued in relatively small amounts, making them accessible to individual investors.