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.

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Definitions:

Dispatched

The act of sending someone or something off to a destination or for a specific purpose, often related to the delivery of goods or services.

Power To Revoke

The legal authority to cancel or withdraw a decision, offer, or agreement.

Promises

Declarations or assurances that one will do something or that a particular thing will happen.

Subjective Intent

A legal concept focusing on what an individual personally intended to happen or believed would happen, rather than the objective outcome of their actions.