Marks Consulting Purchased Equipment Costing $45,000 on January 1,Year 1

question 39

Multiple Choice

Marks Consulting purchased equipment costing $45,000 on January 1,Year 1.The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years.Straight-line depreciation is used.If the equipment is sold on July 1,Year 5 for $20,000,the journal entry to record the sale will include a:

• A)Credit to cash for $20,000.
• B)Debit to accumulated depreciation for $22,500.
• C)Debit to loss on sale for $10,000.
• D)Credit to loss on sale for $10,000.
• E)Debit to gain on sale for $2,500.

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Definitions:

Federal Sentencing Guidelines

A set of rules used by judges in the United States to determine the sentence for a convicted individual, taking into account the nature of the crime and the defendant's criminal history.

Tolerate Misconduct

The acceptance or allowance of behavior that is wrong or inappropriate without taking action to correct or stop it.

Social Isolation

A state where an individual lacks a sense of social belonging, engagement with others, or has minimal social contacts, often leading to negative health outcomes.

Unethical Organizational Conduct

Actions or behaviors within a company that violate moral principles, professional standards, or legal obligations, damaging stakeholders and the organization.