Equipment Acquired on January 1, 2010, Is Sold on June

question 164

Multiple Choice

Equipment acquired on January 1, 2010, is sold on June 30, 2013, for $11,200. The equipment cost $26,800, had an estimated residual value of $6,800, and an estimated useful life of 5 years. The company prepared financial statements on December 31, and the equipment has been depreciated using the straight-line method. Prior to determining the gain or loss on the sale of this equipment, the company should record depreciation of:

• A) $0.
• B) $2,000.
• C) $5,000.
• D) $31,700.

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Definitions:

International Business

Commercial transactions that occur across national borders, involving the exchange of goods, services, or information.

High-context

A communication style where much of the information is understood through context, non-verbal cues, and shared experiences rather than explicitly stated in the message.

Verbal Communication

The process of conveying messages or information through spoken words.

Nonverbal Signals

Forms of communication that do not involve words but convey messages through gestures, postures, and facial expressions.