Morton Company Has the Following Transactions in the Current Year

question 98

Multiple Choice

Morton Company has the following transactions in the current year. Assuming that all of the transactions are material, which of them will most likely have no effect on current year net income?

• A) advance in technology that renders certain inventory items obsolete
• B) retirement of callable bonds at a premium
• C) sale of used equipment that had been fully depreciated in prior years
• D) increase in the fair value of certain available-for-sale securities held as an investment

---

Definitions:

WAIS-IV

The Wechsler Adult Intelligence Scale-Fourth Edition, a widely used test designed to measure intelligence and cognitive ability in adults.

Reliable

Pertaining to the consistency and dependability of a result or measurement.

Culture-Fair Tests

assessments designed to minimize the effects of cultural background, language, and education on test performance to measure intelligence or aptitude more fairly.

Cultural Background

Cultural background encompasses the culture, traditions, languages, and experiences that shape an individual's identity and perception of the world.