A Company Sells a Long-Lived Asset That Originally Cost $200,000

question 92

Multiple Choice

A company sells a long-lived asset that originally cost $200,000 for $50,000 on December 31,2009.The accumulated amortization account had a balance of $110,000 after the current year's depreciation of $45,000 had been recorded.The company should recognize a:

• A)$100,000 loss on disposal.
• B)$40,000 gain on disposal.
• C)$40,000 loss on disposal.
• D)$25,000 loss on disposal.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds contradictory beliefs, ideas, or values at the same time.

Situational Attribution

The process of assigning the cause of behavior to environmental factors rather than to internal traits or motivations.

Role-Playing

A method or scenario in which individuals assume roles and act them out in a simulated context, often used in training, therapy, or educational settings.

Cognitive Dissonance Theory

A psychological theory proposing that we experience discomfort or dissonance when our beliefs, attitudes, or behaviors are inconsistent, leading us to change one to reduce the dissonance.