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Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000

Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000
Transcribed Image Text:Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000
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