Nicklaus Company Has Decided to Sell One of Its Old

question 241

Multiple Choice

Nicklaus Company has decided to sell one of its old machines on June 30, 2014. The machine was purchased for $160,000 on January 1, 2010, and was depreciated on a straight-line basis for 10 years with no residual value. If the machine was sold for $52,000, what was the amount of the gain or loss recorded at the time of the sale?

• A) $36,000.
• B) $108,000.
• C) $44,000.
• D) $92,000.

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Definitions:

Cancelling Contract

The process of legally terminating an agreement before its agreed-upon conclusion, through mutual consent or legal means.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at standardizing practices across states.

Remedies

Legal remedies involve the methods and means through which a court of law enforces a right, imposes a penalty, or makes another court order to impose its will.

Cancelling Contract

The act of terminating an agreement or contract before its fulfillment or end date.