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:

Volume

The measurement of the three-dimensional space a substance (solid, liquid, gas) or shape occupies or contains.

Density

The mass of a substance per unit volume, often measured in grams per cubic centimeter or kilograms per cubic meter.

Mass

A property of physical objects that quantifies the amount of matter within them, typically measured in kilograms or grams.

Volume

A measure of the amount of space an object or substance occupies.