Macbeth Corp

question 23

Multiple Choice

Macbeth Corp.'s comparative statements of financial position at December 31, 2020 and 2019 reported accumulated depreciation balances of $ 960,000 and $ 720,000, respectively. Equipment with a cost of $ 60,000 and a book value of $ 48,000 was the only equipment sold in 2020. Therefore, the depreciation expense for 2020 was

• A) $ 228,000.
• B) $ 240,000.
• C) $ 252,000.
• D) $ 264,000.

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Definitions:

Held-To-Maturity Securities

Debt securities that a firm has the intent and ability to hold until they mature rather than trading them.

Trading Securities

Financial instruments bought and held primarily for selling in the near term to profit from price changes.

Unrealized Gain (Loss)

The increase (gain) or decrease (loss) in the value of investments that a company holds, which have not yet been sold for a profit or a loss.

Long-Term Investments

Assets intended to be held for more than one year, including stocks, bonds, real estate, and other securities.