On January 1,2012,a machine with an estimated life of 5 years and an estimated residual value of $5,000 was acquired for $40,000.On July 1,2014,the machine was sold for $7,000 cash.The journal entry to record the sale
A)decreases stockholder's equity
B)increases total assets
C)decreases total expenses
D)increases net income

Question

Quizplus · Accepted Answer

The sale of the machine results in a loss, which decreases stockholder's equity.

On January 1,2012,a Machine with an Estimated Life of 5