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:

Neonate

Newborn.

Fetus

A developing mammal or human from the completion of its embryonic stage, specifically in humans from the ninth week after fertilization until birth.

Ovulation

The phase in the female menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization.

Cleavage

The process of cell division in the very early embryo that leads to the formation of the blastula.