Use the Information Below for Alpha Inc

question 89

Multiple Choice

Use the information below for Alpha Inc.for 2015 and 2016 to answer the following question. During 2016, Alpha Inc.sold equipment with a cost of $30,000 and accumulated depreciation of $25,000.A gain of $3,000 was recognized on the sale of the equipment This was the only equipment sale during the year.
What amount would be reported as the cash proceeds from the sale of equipment?

• A)$2,000
• B)$3,000
• C)$5,000
• D)$8,000

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Definitions:

Optimal Output

The level of production that maximizes a firm's profit or minimizes its costs, determined by where marginal cost equals marginal revenue.

Price to Clear

The market price at which the quantity supplied equals the quantity demanded, ensuring all goods in the market are sold.

Profit-Maximizing Output

The optimal production stage for a business, where the highest profit is realized at the point where marginal cost equals marginal revenue.

Total Cost

The complete cost of production, including fixed and variable costs.