A Company Sells a Piece of Equipment Half-Way Through the Accounting

question 117

Multiple Choice

A company sells a piece of equipment half-way through the accounting period.The straight-line rate of depreciation on the equipment is $40,000 a year.Before recording the asset sale,the company should debit:

• A)depreciation expense for $40,000 and credit long-lived assets for $40,000.
• B)accumulated depreciation for $40,000 and credit cash for $40,000.
• C)depreciation expense for $20,000 and credit accumulated depreciation for $20,000.
• D)cash for $20,000 and credit depreciation expense for $20,000.

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Definitions:

Participatory Style

A leadership approach that involves engaging team members in decision-making processes and valuing their input and collaboration.

Core Skill

Essential ability or competence that is necessary for successful performance in a specific job or activity.

Success Abroad

Achieving desired or positive outcomes in international or cross-cultural environments.

Change Management

The approach to transitioning individuals, teams, and organizations to a desired future state to achieve a specific outcome.