Martinez Owns an Asset That Cost $87,000 with Accumulated Depreciation

question 101

Multiple Choice

Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record:

• A) A gain on sale of $2,000.
• B) A loss on sale of $45,000.
• C) A loss on sale of $5,000.
• D) A loss on sale of $2,000.
• E) A gain on sale of $5,000.

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Definitions:

Mummification

A process of preserving the body after death by removing the internal organs, treating the body with chemicals, and wrapping it in cloth, practiced in ancient Egypt and other cultures.

Embalming

The process of preserving a body after death using chemicals to delay decomposition, often for funeral proceedings.

Cultural Aspect

The elements of culture, including beliefs, norms, and social practices, that influence the behavior and perceptions of individuals within a society.

Mourning Customs

The rituals and practices that a culture or society follows in expressing grief and commemorating the dead.