On January 1,Year 1,a Machine with an Estimated Life of Five

question 92

Multiple Choice

On January 1,Year 1,a machine with an estimated life of five years and an estimated residual value of $5,000 was acquired for $40,000.On July 1,Year 3,the machine was sold for $7,000 cash.What is the journal entry to record this sale?

• A) decrease shareholders' equity
• B) increase total assets
• C) decrease total expenses
• D) increase net income

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Definitions:

Environmental Input

External factors or stimuli from the surrounding environment that influence the development or behavior of an organism.

Sensory Register

The part of the information-processing system that stores input from the sensory organs for a fraction of a second, during which time it is either attended to and moved into working memory or lost from the system.

Short-Term Memory

The part of the memory system that is responsible for temporarily holding small amounts of information in mind for a brief period.

Transductively

Transductively refers to the cognitive process in children where reasoning is made from one specific instance to another, often without logical basis in the adult sense.