Equipment That Cost $90000 and on Which $50000 of Accumulated

question 195

Multiple Choice

Equipment that cost $90000 and on which $50000 of accumulated depreciation has been recorded was disposed of for $45000 cash.Recording this event would include a(n)

• A)gain of $5000.
• B)loss of $5000.
• C)decrease to Equipment for $15000.
• D)increase to Accumulated Depreciation for $15000.

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Definitions:

Product Liability

The legal responsibility of manufacturers and sellers to compensate for harm caused by defective products they market.

Noneconomic Damages

Compensation awarded in a lawsuit for losses that do not have a direct monetary value, such as pain and suffering or emotional distress.

Tort Case

A legal case involving claims of civil wrongs or injuries that do not arise out of contractual obligations, seeking compensation for damages caused.

Pain and Suffering

A legal term that refers to the physical and emotional distress caused by an injury, often factored into compensation calculations in lawsuits.