Equipment Costing $280000 Was Destroyed When It Caught on Fire

question 41

Multiple Choice

Equipment costing $280000 was destroyed when it caught on fire.At the date of the fire the accumulated depreciation on the equipment was $112000.An insurance check for $320000 was received based on the replacement cost of the equipment.Recording the insurance proceeds and the disposition of the equipment will include a(n)

• A)gain on disposal of $40000.
• B)decrease to Equipment of $168000.
• C)increase to Accumulated Depreciation for $112000.
• D)gain on disposal of $152000.

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Definitions:

Organization

(1) Piaget’s term for the creation of categories or systems of knowledge. (2) Mnemonic strategy of categorizing material to be remembered.

Technique

A specific way of carrying out a particular task, often implying a skillful or efficient method.

Moral Reasoning

The process of determining right and wrong in scenarios, guided by personal, cultural, or societal standards of behavior.

Obedience to Authority

The psychological tendency to comply with instructions or orders from individuals perceived as authoritative.