Martinez Owns Machinery That Cost $87,000 with Accumulated Depreciation of $40,000

question 218

Multiple Choice

Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company sells the machinery for cash of $42,000. The journal entry to record the sale would include:

• A) A debit to Accumulated Depreciation of $47,000.
• B) A credit to Accumulated Depreciation of $40,000.
• C) A debit to Cash of $42,000.
• D) A credit to Gain on Sale of $2,000.
• E) A credit to Machinery of $47,000.

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Definitions:

Cultural Dimension

An aspect of culture that can be measured relative to other cultures, such as individualism vs. collectivism, that helps in understanding the differences and interactions between cultures.

Dimension Of Culture

An aspect or characteristic that differentiates cultures from each other, such as individualism vs collectivism or power distance.

Power Distance

A cultural dimension that describes the extent to which members of a society accept and expect power to be distributed unequally.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.