An Asset Acquired January 1, 2018, for $15,000 with an Estimated

question 212

Multiple Choice

An asset acquired January 1, 2018, for $15,000 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2019, for $6,000. The entry to record the sale would be:

• A) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 6,000 & \\
• \hline \text { Loss on sale of equipment } & 9,000 & \\
• \hline \text { Equipment } & & 15,000 \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 6,000 & \\
• \hline \text { Equipment } & & 6,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|l|}
• \hline \text { Cash } & 6,000 & \\
• \hline \text { Accumulated depreciation } & 3,750 & \\
• \hline \text { Loss on sale of equipment } & 5,250 & \\
• \hline \text { Equipment } & & 15,000 \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 6,000 & \\
• \hline \text { Accumulated depreciation } & 9,000 & \\
• \hline \text { Equipment } & & 15,000 \\
• \hline
• \end{array}\)

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Definitions:

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A chemical substance produced in the body that controls and regulates the activity of certain cells or organs.

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