Knowledge Check The Alexander Company sold equipment for $35,000. The equipment, which originally cost $100,000 and had an estimated useful life of 10 years and no salvage value, was depreciated for five years using the straight-line method. Cromwell should report the following on its income statement in the year of sale: A)$15,000 loss. B)$15,000 gain. C)$35,000 gain. D)None of the above.
Knowledge Check The method that does notnecessarily produce a declining pattern of depreciation over an asset's service life is: A) The double-declining-balance method. B) The sum-of-the-years'-digits method. C) The units-of-production method. D) All of the above produce a declining pattern.
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