Ecker Company Purchased a New Machine on May 1, 2002

question 108

Multiple Choice

Ecker Company purchased a new machine on May 1, 2002 for $176,000.At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $8,000.The company has recorded monthly depreciation using the straight-line method.On March 1, 2011, the machine was sold for $24,000.What should be the loss recognized from the sale of the machine?

• A)$0.
• B)$3,600.
• C)$8,000.
• D)$11,600.

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Definitions:

Boards of Directors

A group of individuals elected to represent shareholders and oversee the management and direction of a company or organization.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that govern how financial statements should be prepared and presented globally.

Local Environment

The specific conditions and natural surroundings in which a business or entity operates, including factors like climate, ecology, and community.

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.