A Company Sells a Long-Lived Asset That Originally Cost $200,000

question 144

Multiple Choice

A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31,2016.The Accumulated Depreciation account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded.The company should recognize a:

• A) $100,000 loss on sale.
• B) $40,000 gain on sale.
• C) $40,000 loss on sale.
• D) $25,000 loss on sale.

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Definitions:

Mean

The sum of a collection of numbers divided by the count of numbers in the collection, also known as the average.

Statistical Process Control

A method used in quality control that employs statistical techniques to monitor and control a process, ensuring it operates at its full potential.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a false positive.

Level Shift

A sudden and lasting change in the average value of a time series or signal.