Mia Hero Shop sold its table with a book value of $1,000 for $800.Mia Hero will record:
A) a loss on the sale.
B) a gain on the sale.
C) depreciation expense of $200.
D) cash received of $1,000.

Question

Quizplus · Accepted Answer

Since Mia Hero Shop sold the table for less than its book value, it incurred a loss on the sale. The loss amount would be the difference between the book value of $1,000 and the selling price of $800, or $200. Therefore, Mia Hero Shop will record a loss on the sale.

Mia Hero Shop Sold Its Table with a Book Value