Orton Corporation, Which Has a Calendar Year Accounting Period, Purchased

question 81

Multiple Choice

Orton Corporation, which has a calendar year accounting period, purchased a new machine for $60,000 on April 1, 2010. At that time Orton expected to use the machine for nine years and then sell it for $6,000. The machine was sold for $33,000 on Sept. 30, 2015. Assuming straight-line depreciation, no depreciation in the year of acquisition, and a full year of depreciation in the year of retirement, the gain to be recognized at the time of sale would be

• A) $6,000.
• B) $4,500.
• C) $3,000.
• D) $0.

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Definitions:

Francis Cecil Sumner

Recognized as the first African American to receive a Ph.D. in psychology in the United States.

First African American

A term referring to the notable achievement of being the first African American person to accomplish a specific feat or hold a particular position.

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.

Patterns of Thought

Distinctive ways of thinking and understanding the world, often influenced by culture, experience, and education.