In the Process of Liquidation,a Partnership Firm Sells Its Non-Cash

question 129

Multiple Choice

In the process of liquidation,a partnership firm sells its non-cash assets with a book value of $55,000,for $73,000.Which of the following will be included in the entry to record the sale of assets at liquidation?

• A) Gain on Disposal will be credited by $73,000.
• B) Gain on Disposal will be debited by $73,000.
• C) Gain on Disposal will be credited by $18,000.
• D) Gain on Disposal will be debited by $18,000.

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Definitions:

Earned-Income Tax Credit

A returnable tax credit aimed at individuals and families with low to moderate income who work, especially those who have children.

Wage Subsidy

A financial incentive given by governments to employers to encourage the hiring of certain individuals, often used to reduce unemployment in disadvantaged groups.

Social Security Taxes

Taxes imposed by governments to fund social security programs, typically deducted from employees' paychecks and matched by employers.

Occupational Choices

The decisions individuals make regarding their employment, including type of job, industry, and professional career path.