A Machine with a Carrying Amount of $9,000 Has a Net

question 37

Multiple Choice

A machine with a carrying amount of $9,000 has a net selling price of $8,000.The replacement cost of this asset is $10,000 and the present value of future cash flows is $9,500.What is the deprival value of the machine?

• A) $0
• B) $8,000
• C) $9,000
• D) $9,500
• E) $10,000

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Definitions:

User Cost

The cost associated with using a durable asset over a period, including the depreciation of the asset and possibly other expenses like maintenance.

Transtheoretical Model

A theory of behavior change that outlines five stages individuals move through when modifying behavior, from precontemplation to maintenance.

Relapse

The recurrence of a disease or symptoms after a period of improvement.

Maintenance Stage

The phase in behavior change models where individuals work to sustain their newly adopted healthier behaviors over time.