Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $60,000 and accumulated depreciation of $55,000.

Previously issued stock that a corporation purchases from shareholders is called:

A.
treasury stock.

B.
outstanding stock.

C.
issued stock.

D.
authorized stock.

Answer
treasury stock.

A company purchased inventory for $1,200 per unit. The company later sold one unit of the inventory for cash of $2,200. Under the perpetual inventory system, which accounts will be debited to record the sale?

A.
Cash, $2,200; Cost of Goods Sold, $1,000

B.
Cash, $2,200; Cost of Goods Sold, $1,200

C.
Cash, $2,200; Inventory, $1,200

D.
Cash, $2,200; Inventory, $ 1  000


Answer
Cash, $2,200; Cost of Goods Sold, $1,200



Tony Company sells equipment for $20,000 cash. The equipment has a historical cost of $60,000
and accumulated depreciation of $55,000.
What is the gain or loss on sale of the equipment?

A.$15,000 loss

B.$20,000 loss

C.$15,000 gain

D.$20,000 gain
Answer
C.$15,000 gain