On December 31,Strike Company Has Decided to Discard One of Its

question 170

Multiple Choice

On December 31,Strike Company has decided to discard one of its batting cages.The equipment had an initial cost of $310,000 and has accumulated depreciation of $260,000.Depreciation has been recorded up to the end of the year.Which of the following will be included in the entry to record the disposal?

• A)Gain on Disposal of Asset Cr.,$50,000
• B)Loss on Disposal of Asset Dr.,$260,000
• C)Accumulated Depreciation Dr.,$310,000
• D)Equipment Cr.,$310,000

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Definitions:

Product Sold

A measure indicating the quantity of an item offered that has been purchased by consumers.

Quantity

A property that can exist as a multitude or magnitude, which can be measured or quantified.

Newsvendor Model

A mathematical model used to determine optimal inventory levels for products with uncertain demand and a limited selling period.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of an investment.