Equipment with an Estimated Residual Value at Acquisition of $15,000

question 53

Multiple Choice

Equipment with an estimated residual value at acquisition of $15,000 was sold on December 31, 2013, for $20,000 cash. The following data were available at the time of sale: When this transaction is recorded, it should include a

• A)debit of $80,000 to the Loss on Disposal account.
• B)credit of $20,000 to the Equipment account.
• C)credit of $5,000 to the Gain on Disposal account.
• D)debit of $20,000 to the Accumulated Depreciation account.

---

Definitions:

Government Policy

Decisions and actions taken by a government to achieve certain goals, which can relate to domestic or international issues, including economy, health, defense, and environment.

Petrograd

The name given to the city of Saint Petersburg, Russia, between 1914 and 1924, especially noted during the Russian Revolution.

Food Shortages

A situation in which the supply of food is insufficient to meet the demand, often resulting in hunger, malnutrition, and increased food prices.

War Communism

An economic and political system that was implemented by the Bolsheviks during the Russian Civil War, characterized by the nationalization of industry and the forced requisition of agricultural produce.