Martinez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record:
A. A loss on sale of $5,000.
B. A loss on sale of $2,000.
C. A gain on sale of $5,000.
D. A loss on sale of $45,000.
E. A gain on sale of $2,000.
Answer: A
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What will be an ideal response?
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Indicate whether the statement is true or false.