When a Company Sells Machinery at a Price Equal to Its

question 112

Multiple Choice

When a company sells machinery at a price equal to its book value, this transaction would be recorded with an entry that would include the following:

• A) debit Cash and Accumulated Depreciation; credit Machinery
• B) debit Machinery; credit Cash and Accumulated Depreciation
• C) debit Cash and Machinery; credit Accumulated Depreciation
• D) debit Cash and Depreciation Expense; credit Accumulated Depreciation

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Definitions:

LLC Statutes

Legal regulations governing the formation, operation, and dissolution of Limited Liability Companies.

Mergers

The combination of two or more companies into a single legal entity, often to achieve greater efficiency or market share.

Surviving LLC

A term used to describe a limited liability company that continues to exist after a merger or consolidation, absorbing the assets and liabilities of the other entity.

LLC

Limited Liability Company; a business structure in the United States that protects its owners from personal responsibility for its debts or liabilities.