When a Company Sells Equipment for Cash on a Date

question 3

Multiple Choice

When a company sells equipment for cash on a date other than the last day of the accounting period,it must record:

• A)amortization expense for the entire accounting period during which the equipment is sold.
• B)the disposal by reducing equipment and increasing revenue; a gain or loss is reported if the decrease and increase are not equal.
• C)the disposal by decreasing both equipment and accumulated amortization while increasing cash; a gain is reported if total assets increase.
• D)accumulated amortization for the entire current accounting period.

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