Lori Company Sold an Operational Asset, a Machine, for Cash

question 21

Multiple Choice

Lori Company sold an operational asset, a machine, for cash. It originally cost $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the cash inflow from this transaction?

• A) $4,000.
• B) $3,000.
• C) $5,000.
• D) $7,000.

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Definitions:

Political Power

The ability to influence or outright control the behavior of people and institutions, often within a governmental or organizational context.

Organizational Objectives

The specific, measurable goals set by a company or organization to guide its operations towards achieving its mission and vision.

Perception

Perception is the process through which people receive and interpret information from the environment.

Organizational Politics

Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through nonsanctioned means and the art of creative compromise among competing interests.