1Line Method

question 72

Multiple Choice

1.line method. Prior to determining the gain or loss on the sale of this equipment, the company should record depreciation of:

• A)$2,000.
• B)$5,000.
• C)$31,700.
• D)nothing; no entry is required.

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Definitions:

Percentage Increase

The ratio of the increase in an amount to the original amount, expressed as a percentage.

Retail Price

The price at which goods are sold to the public, often including additional costs like markup and taxes.

Markup

Incremental pricing on the acquisition cost of products to ensure overhead and profit incorporation.

Wholesale Cost

The price charged for goods and services that are sold by wholesalers to retailers or other businesses, typically lower than the retail price.