If a Fixed Asset with an Original Cost of $18,000

question 80

Multiple Choice

If a fixed asset with an original cost of $18,000 and accumulated depreciation of $2,000 is sold for $15,000,the company must

• A)recognize a loss on the income statement under other expenses.
• B)recognize a loss on the income statement under operating expenses.
• C)recognize a gain on the income statement under other revenues.
• D)Gains and losses are not to be recognized upon the sell of fixed assets.

Know how to recognize and measure unrealized and realized gains or losses on investments.

Comprehend the effects of investments on net income and shareholder's equity.

Grasp the implications of temporary versus other-than-temporary declines in the value of investments.

Analyze the impact of errors in classification of securities on financial statements.

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Definitions:

Self-regulated Creation

The process of independently managing and producing something, often referring to learning or creative endeavors, through self-discipline and control.

Engage

To participate or become involved in an activity or interaction.

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An excessive or inappropriate immune system response to a substance that is normally harmless, leading to allergic or adverse reactions.

Massive Vasodilation

A significant increase in the diameter of blood vessels, leading to decreased blood pressure and increased blood flow to certain areas of the body.