A Company Discarded a Display Case Originally Purchased for $8,000

question 86

Multiple Choice

A company discarded a display case originally purchased for $8,000. The accumulated depreciation was $7,200. The company should recognize a(an) :

• A) $0 gain or loss.
• B) $800 loss.
• C) $800 gain.
• D) $8,000 loss.
• E) $7,200 loss.

---

Definitions:

Required Return

The minimum expected return investors demand for investing in a security or project.

Unlevered Return

A return on investment that doesn't account for debt, measuring the performance of an investment as if no borrowing took place.

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the company.

Total Debt

The sum of all short-term and long-term liabilities owed by an entity.