Martinez Owns an Asset That Cost $87,000 with Accumulated Depreciation

question 42

Multiple Choice

Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000.The company sells the equipment for cash of $42,000.At the time of sale,the company should record:

• A)A gain on sale of $2,000.
• B)A loss on sale of $2,000.
• C)A loss on sale of $5,000.
• D)A gain on sale of $5,000.
• E)A loss on sale of $45,000.

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Definitions:

Reports

Documents that present information in a structured format for a specific audience and purpose.

Delivery Mode

The method or channel through which a message or information is conveyed to the recipient.

Informal Report

An information or data report presented in a less formal or structured manner, often used for internal communication within organizations.

Memo Format

Memo format is a standardized layout for a memorandum, which is a type of communication used internally within organizations to convey information, directives, or policies.