On January 1, 2014, Pyle Company Purchased an Asset That

question 109

Multiple Choice

On January 1, 2014, Pyle Company purchased an asset that cost $50,000 and had no estimated residual value. The estimated useful life of the asset is 8 years and straight-line depreciation is used. An error was made in 2014 because the total amount of the asset's cost was debited to an expense account for 2014 and no depreciation was recorded. Pretax income for 2014 was $42,000. How much is the correct 2014 pretax income?

• A) $35,750.
• B) $48,250.
• C)$85,750.
• D)$92,000.

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Definitions:

Ambiguous Offer

An offer in a contract that is unclear and can be reasonably interpreted in more than one way.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, including sales, leases, negotiable instruments, and secured transactions.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, governing the sale of goods between parties from different countries.

Restatement Second

A collection of treatises on U.S. law aimed at summarizing, clarifying, and perhaps modernizing the law, with "Second" indicating a second edition of a subject area.