Paul's Delivery Service Is Considering Selling One of Its Smaller

question 15

Multiple Choice

Paul's Delivery Service is considering selling one of its smaller trucks that is no longer needed in the business.The truck originally costed $23,000 and has accumulated depreciation of $10,000.The truck can be sold for $14,000.Another company is interested in leasing the truck.It will pay $4,800 per year for three years.Paul's Delivery Service will continue to pay the taxes and license fees for the truck, but all other expenses will be paid by the lessee.Management assumes the expenses for the taxes and license will be $300 per year.Which of the following statements is correct?

• A) Paul's Delivery Service should sell the truck because the differential loss from leasing is $500.
• B) Paul's Delivery Service should lease the truck because the differential income from leasing is $12,200.
• C) Paul's Delivery Service should lease the truck because the differential income from leasing is $300.
• D) Paul's Delivery Service is indifferent as to whether the company should lease or sell the truck because there is no differential income or loss between the alternatives.

Understanding the concept of epimers and enantiomers in carbohydrates.

Knowledge about the solubility of monosaccharides in water.

Ability to draw cyclic structures of monosaccharides including hemiacetal forms.

Understanding the significance and process of photosynthesis in producing glucose.

---

Definitions:

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services delivered but not yet paid for.

Unearned Revenues

Money received by a company for services or goods yet to be delivered or provided, considered a liability until the transaction is completed.

Dividends Account

An account used to record the payments made by a company to its shareholders out of its profits.