A Company Discarded a Display Case Originally Purchased for $8,000

question 86

Multiple Choice

A company discarded a display case originally purchased for $8,000. The accumulated depreciation was $7,200. The company should recognize a(an) :

• A) $0 gain or loss.
• B) $800 loss.
• C) $800 gain.
• D) $8,000 loss.
• E) $7,200 loss.

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Definitions:

Overstated Accounts

Financial accounts or records reported with higher values than they actually possess, often leading to a misrepresentation of financial health.

Transactions

Acts of buying, selling, or exchanging goods, services, or financial assets in the course of business.

Assets

are resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Liabilities

Financial obligations or debts that a company or individual owes, which are required to be paid in the future.