A Company Sells a Piece of Equipment Half-Way Through the Accounting

question 146

Multiple Choice

A company sells a piece of equipment half-way through the accounting period.The straight-line rate of depreciation on the equipment is $40,000 per year.Before preparing the entry to record the sale of the equipment,the company should first debit:

• A)Depreciation Expense for $40,000 and credit Accumulated Depreciation for $40,000.
• B)Accumulated Depreciation for $40,000 and credit Cash for $40,000.
• C)Depreciation Expense for $20,000 and credit Accumulated Depreciation for $20,000.
• D)Cash for $20,000 and credit Depreciation Expense for $20,000.

---

Definitions:

After 1980

Refers to the time period following the year 1980, often used in discussions about cultural, technological, or societal changes.

Ethological

Pertains to the scientific study of animal behavior, particularly in natural environments, focusing on the evolutionary implications of behavior.

Psychoanalytic

Pertaining to a theory of psychology and method of psychotherapy, originally developed by Sigmund Freud, emphasizing unconscious mental processes and early childhood experiences in shaping behavior and personality.

Cognitive

Pertaining to the mental processes involved in acquiring knowledge and understanding through thought, experience, and the senses.