Boalsburg Co

question 5

Multiple Choice

Boalsburg Co.purchased a truck on January 1, 2014, for $30,000.The truck had an estimated life of 5 years and an estimated residual value of $5,000.Lightning Delivery used the straight-line method to depreciate the asset.On July 1, 2016, the truck was sold for $17,000 cash.The journal entry to record the sale of the truck in 2016?

• A) increases net income
• B) increases total assets
• C) decreases total expenses
• D) decreases stockholders' equity

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than its fair tangible asset value, often related to the brand, customer base, and reputation.

Trademark

A symbol, word, or words legally registered or established by use as representing a company or product.

Intermediaries

Individuals or organizations that act as middlemen in a transaction between two parties, facilitating interaction or negotiation between them.

Disintermediation

The removal of intermediaries from a supply chain or business process, often through direct transactions between producers and consumers facilitated by digital technologies.