Alliance Products purchased equipment that cost $120,000. It had an estimated useful life of four years and no residual value. The equipment was depreciated by the straight-line method and was sold at the end of the second year of use.For what amount should Alliance record the gain or loss if the equipment is sold for $65,000?
A. Gain of $5,000.
B. Loss of $5,000.
C. Neither a gain nor a loss since the equipment was sold at its book value.
D. Neither a gain nor a loss since the gain would not be recognized.
Answer: A
You might also like to view...
Answer the following statements true (T) or false (F)
1.When a manufacturing firm uses some imported inputs in the production process, the appropriate measure of protection is the nominal tariff. 2.Assume that Japan is a large country and levies an "optimal tariff." In this case, the tariff's terms of trade effect more than offsets the consumption and production losses and the tariff results in an overall welfare gain for Japan 3.If Venezuela is a small country its terms of trade will improve when it levies a tariff on imports. 4.If Japan is a large country it cannot influence the terms of trade when it imposes a tariff on imports. 5.If a small country levies a tariff on imports, its overall national welfare necessarily falls.
Compare and contrast the Chicago and Harvard Schools' approaches to antitrust policy
What will be an ideal response?
Property Taxes, special assessments, and fines and forfeits are types of nonexchange transactions. These are examples of:
A. Voluntary nonexchange transactions. B. Imposed nonexchange transactions. C. Government-mandated nonexchange transactions. D. Deferred Inflows.
A fraudulent transfer made more than one year prior to filing cannot be avoided by the trustee
a. True b. False Indicate whether the statement is true or false