An Asset That Cost $24,000 and Has Accumulated Depreciation of $18,000

question 86

Multiple Choice

An asset that cost $24,000 and has accumulated depreciation of $18,000 is sold for $5,200.The entry to record the sale includes

• A)no gain or loss.
• B)a debit to Loss on Sale of Asset for 800.
• C)a credit to Loss on Sale of Asset for 18,800.
• D)a credit to Gain on Sale of Asset for 800.

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Definitions:

Demand Falls

This occurs when there is a decrease in the desire or willingness of consumers to purchase a good at a given price, leading to potential shifts in the market equilibrium.

Economic Losses

Financial losses experienced by businesses or economies due to factors such as poor investments, natural disasters, or reduced consumer spending.

Pizza Suppliers

Businesses that supply pizza ingredients, equipment, or the pizza itself to consumers or other businesses.

Industry

A sector of the economy that produces goods or services, often categorized by similarity in the products or services they provide.