If a Gain of $30,000 Is Incurred in Selling (For

question 15

Multiple Choice

If a gain of $30,000 is incurred in selling (for cash) office equipment that cost $120,000 and had accumulated depreciation of $40,000, the total amount reported in investing activities is

• A)$90,000.
• B)$110,000.
• C)$130,000.
• D)$150,000.

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Definitions:

Counteroffer

A response to an offer in negotiations that makes modifications to the initial offer.

Common Law

Common Law is a body of unwritten laws based on legal precedents established by the courts.

Mirror Image

A rule in contract law stating that an offer must be accepted exactly with no modifications; the acceptance must "mirror" the offer.

Mutual Assent

Mutual assent is the agreement between parties to enter into a contract, demonstrated by offer and acceptance.