Sela Sold a Machine for $140,000

question 1317

Multiple Choice

Sela 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 total gross profit for installment sale recognition purposes is

• A) $50,000.
• B) $60,000.
• C) $30,000.
• D) $40,000.

Understand how Goodwill should be allocated following a business combination.

Recognize the frequency of Goodwill impairment tests under IFRS.

Identify the triggers for Goodwill impairment testing in private enterprises.

Understand the use and functionality of hardware and software in communication technologies.

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Definitions:

Personal Brand

The process of marketing oneself and one's career as brands, emphasizing a unique combination of skills, experiences, and personality.

Brand Voice

The distinctive personality a brand conveys through its communication style, tone, and choice of words across all platforms.

Difference

A point or way in which people or things are not the same; the state or condition of being unlike or dissimilar.

Personal Brands

The practice of marketing individuals and their careers as brands, emphasizing their personal image and values.