A Company Sells Equipment for $450,000 When the Book Value

question 152

Multiple Choice

A company sells equipment for $450,000 when the book value of the equipment is $400,000.The company would record the extra $50,000 as:

• A)a gain,increasing net income and stockholders' equity.
• B)revenue,increasing net income and stockholders' equity.
• C)expenses,decreasing net income and stockholders' equity.
• D)a loss,decreasing net income and stockholders' equity.

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Definitions:

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Smear

A specimen spread thinly and unevenly across a slide.

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A disease that can develop from untreated strep throat or scarlet fever, leading to inflammatory issues in various body parts including the heart.