Agler Corp

question 10

Multiple Choice

Agler Corp.had the following infrequent transactions during 2007: A $150,000 gain from selling the only investment Agler has ever owned.
A $210,000 gain on the sale of equipment.
A $70,000 loss on the write-down of inventories.
In its 2007 income statement, what amount should Agler report as total infrequent net gains that are not considered extraordinary?

• A)$80,000.
• B)$140,000.
• C)$290,000.
• D)$360,000.

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Definitions:

Delivery Duty

A responsibility assigned for the transportation and delivery of goods, ensuring they reach their destination in the agreed-upon condition and timeframe.

Risk of Loss

A legal term that determines which party bears the risk for damage or loss to goods after a transaction has occurred but before the buyer takes possession.

Common Carrier

A business or service that is licensed to transport goods or people and is required to offer its services to the public under equal terms.

Damaged Goods

Damaged goods refer to products that have been harmed or reduced in value before they can be sold to the consumer, often leading to loss for the seller.