An Asset That Cost $24,000 and Has Accumulated Depreciation of $18,000

question 88

Multiple Choice

An asset that cost $24,000 and has accumulated depreciation of $18,000 is sold for $5,200.The entry to record the sale is:

• A) Accumulated Depreciation- Asset 6,000
• Asset 6,000
• B) Cash 5,200
• Accumulated Depreciation- Asset 18,000
• Loss on Sale of Asset 800
• Asset 24,000
• C) Loss on Sale of Asset 18,800
• Asset 18,800
• D) Asset 18,000
• Accumulated Depreciation- Asset 18,000

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Definitions:

Minimize Losses

Strategies or actions taken to reduce the amount of money or resources wasted or not gained in operations or transactions.

Pure Monopolist

An entity that is the sole provider of a particular product or service, facing no competition in its market.

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.