The Following Information Is Given for Building Inc During 2005 New Assets Were Purchased for of $78,000, and l

question 73

Multiple Choice

The following information is given for Building Inc.:
$$\begin{array} { l r r } \text { As of 12/31 } & { 2005 } & 2004 \\\text { PPE } & \$ 570,000 & \$ 530,000 \\\text { Accumulated depreciation } & 102,000 & 92,000 \\\text { Depreciation expense } & 30,000 & 32,000\end{array}$$
During 2005 new assets were purchased for of $78,000, and plant assets were sold at a $10,000 loss.
-What was the book value of the sold assets?

• A)$38,000
• B)$18,000
• C)$10,000
• D)$8,000

---

Definitions:

Economic Inefficiencies

Situations where resources are not used optimally according to consumer preferences, often leading to wasted resources or unmet demands.

Product Variety

Refers to the different types and variations of products available in a market or offered by a company.

Excess Capacity

A scenario where a firm’s production capability exceeds the demand for its product, often leading to inefficiency and increased costs.

Product Variation

The process of making slight adjustments to a product's features, design, or offerings to differentiate it from competitors’ products.