97.An asset which costs $28,800 and has accumulated depreciation of $6,000 is sold for $21,600. What amount of gain or loss will be recognized when the asset is sold?
A. A gain of $1,200.
B. A loss of $1,200.
C. A loss of $7,200.
D. A gain of $7,200.
98.An asset which costs $18,800 and has accumulated depreciation of $6,000 is sold for $11,600. What amount of gain or loss will be recognized when the asset is sold?
A. A gain of $1,200.
B. A loss of $1,200.
C. A loss of $7,200.
D. A gain of $7,200.
99.When a depreciable asset is sold at a price equal to its book value, a journal entry would include:
A. A credit to the asset account for its book value.
B. A debit to accumulated depreciation.
C. A credit to accumulated depreciation.
D. A credit to cash.
100.A gain is recognized on the disposal of plant assets when:
A. The sales price is greater than the residual value but less than the book value.
B. The sales price is less than both the book value and the residual value.
C. The sales price is greater than the book value and greater than the residual value.
D. The sales price is greater than the book value and less than the residual value.
101.The gain on the disposal of equipment is recognized when:
A. The book value of the equipment is greater than the value received.
B. The book value of the equipment is less than the value received.
C. A salvage value exists.
D. A gain should not be recognized on the disposal of an asset.
102.For financial reporting purposes, the gain or loss on the sale of a plant asset is determined by comparing the asset's:
A. Cost with its book value.
B. Sales price with its book value.
C. Tax basis with its book value.
D. Sales price with its tax basis.
103.Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:
A. $65,000.
B. $75,000.
C. $100,000.
D. $110,000.
104.Mayer Instrumentation sold a depreciable asset for cash of $300,000. The original cost of the asset was $1,200,000. Mayer recognized a gain of $45,000 on the sale. What was the amount of accumulated depreciation on the asset at the time of its sale?
A. $945,000.
B. $255,000.
C. $1,155,000.
D. $990,000.
105.Suffolk Associates sold office furniture for cash of $42,000. The accumulated depreciation at the date of sale amounted to $38,000, and a gain of $18,000 was recognized on the sale. The original cost of the asset must have been:
A. $56,000.
B. $62,000.
C. $84,000.
D. $59,000.
106.Lewis Imports sold a depreciable plant asset for cash of $135,000. The accumulated depreciation amounted to $170,000, and a loss of $15,000 was recognized on the sale. Under these circumstances, the original cost of the asset must have been:
A. $120,000.
B. $155,000.
C. $185,000.
D. $320,000.