Patch Company Sold Some Office Furniture for $4,800 Cash

question 163

Multiple Choice

Patch Company sold some office furniture for $4,800 cash. The furniture cost $31,500 and had accumulated depreciation through the date of sale totaling $29,300. The journal entry to record the sale of the furniture will include a:

• A)debit to Loss on Sale of Furniture for $26,700.
• B)debit to Gain on Sale of Furniture for $2,600.
• C)credit to Gain on Sale of Furniture for $2,600.
• D)credit to Loss on Sale of Furniture for $26,700.

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Definitions:

Dominant Strategy

In a strategic interaction (game) between two or more players, a course of action (strategy) that a player will wish to undertake no matter what the other players choose to do.

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

First-Mover Advantages

Competitive benefits that accrue to the initial entrant into a market, including brand recognition and product loyalty before competitors enter.

Zero-sum Game

A situation in which one party's gain is exactly balanced by another party's loss, so the net change in wealth or benefit is zero.