On May 1, 2021, Pinkley Company sells office furniture for $300,000 cash.The office furniture originally cost $750,000 when purchased on January 1, 2021.Depreciation is recorded by the straight-line method over 10 years with a salvage value of $75,000.What amount of gain will be recognized on the sale?
A) $22,500
B) $45,000
C) $47,500
D) $90,000
Correct Answer:
Verified
Q93: The balances of the major classes of
Q94: Which of the following assets does not
Q95: The balance in the Accumulated Depreciation account
Q96: The units-of-activity method is generally not suitable
Q97: A plant asset was purchased on January
Q99: Additions and improvements
A)occur frequently during the ownership
Q100: Equipment that cost $420,000 and on which
Q101: Depletion expense is computed by multiplying the
Q102: Goodwill
A)is only recorded when generated internally.
B)can be
Q103: In an exchange of plant assets that
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents