Malea Sold a Machine for $140,000

question 10

Multiple Choice

Malea sold a machine for $140,000.The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable.The buyer assumed an existing loan of $40,000,paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest.Selling expenses are $10,000.The contract price is

• A)$40,000.
• B)$80,000.
• C)$100,000.
• D)$130,000.

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Definitions:

Capillaries

Tiny blood vessels that facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste chemical substances between blood and surrounding tissues.

Oxygen

A chemical element (O) that is critical for respiration in most aerobic organisms and has various industrial uses.

Nutrients

Substances obtained from food and beverages that are essential for growth, metabolism, and for maintaining life.

Arterioles

Small branches of arteries leading to capillaries that regulate blood flow and pressure in the circulatory system.