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.

---

Definitions:

Stapes

A small, stirrup-shaped bone in the middle ear that plays a key role in transmitting sound vibrations to the inner ear.

Bony Labyrinth

A complex system of channels and cavities within the temporal bone of the skull, housing the organs of hearing and balance.

Oval Window

The beginning of the inner ear.

Vestibule

An entrance or enclosed anteroom leading to a larger space, often found in buildings or anatomical structures.