A company sells a plant asset that originally cost $528000 for $194000 on December
31, 2017. The accumulated depreciation
account had a balance of $264000 after
the current year's depreciation of $44000
had been recorded. The company should
recognize a

The company should recognize a loss of $70,000

Explanation:

Here in this question, we shall be evaluating what should be recognized in the transaction books of the company as a result of the sales of one of its plant asset.

The first thing to do here is to calculate the book value of the plant asset.

Mathematically, the book value of the plant asset = Original cost of plant asset - Accumulated depreciation value

from the question; the original cost is $528,000

while the depreciation value is $264,000

Thus, the book value of the plant asset = $528,000 - $264,000 = $264,000

Now since the company sold the plant asset at a value of $194,000, which is less than the book value of the plant asset, the company should recognize a loss

The amount of the loss = Amount at which the sold - book value of the plant asset

= 194,000 -264,000 = -70,000

Thus the company should recognize a loss of $70,000

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the answer is b for dog