An asset's book value is $36,000 on January 1, Year 6. The asset is being depreciated $500 per month using the straight-line method. Assuming the asset is sold on July 1, Year 7 for $25,000, the company should record:
A. A loss on sale of $2,000.
B. Neither a gain or loss is recognized on this type of transaction.
C. A loss on sale of $1,000.
D. A gain on sale of $2,000.
E. A gain on sale of $1,000.
Answer: A
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Alberto was attending a concert at Parker Hall. During the concert Alberto had leave his seat to go to the washroom. There was some construction going on in the hallway outside the washroom, and Alberto tripped on a loose tile, injuring himself. Because it was fairly dark, he didn't see the sign warning patrons to watch their step. Alberto sues Parker Hall for negligence. Which of the following is TRUE?
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