If Equipment That Cost $100 000 and Has Accumulated Depreciation

question 39

Multiple Choice

If equipment that cost $100 000 and has accumulated depreciation of $70 000,is sold for $20 000,the journal entry to record the sale would include:

• A) CR Loss on sale $10 000
• B) DR Gain on sale $10 000
• C) DR Accumulated depreciation $70 000
• D) CR Equipment $20 000.

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Definitions:

Tabula Rasa

A theory suggesting that individuals are born without built-in mental content, and therefore all knowledge comes from experience or perception.

Inborn Predisposition

An innate tendency or propensity to exhibit certain behaviors, characteristics, or health conditions, often influenced by genetic factors.

Out-of-home Placement

A situation where children are placed in settings outside of their family home, such as foster care or residential programs, due to various reasons.

Foster Home

An out-of-home placement in which adults raise children who aren’t their own.