A Machine Costing $176,000 Was Destroyed When It Caught Fire

question 43

Multiple Choice

A machine costing $176,000 was destroyed when it caught fire.At the date of the fire, the accumulated depreciation on the machine was $80,000.An insurance check for $200,000 was received based on the replacement cost of the machine.The entry to record the insurance proceeds and the disposition of the machine will include a

• A)gain on disposal of $24,000.
• B)credit to the Equipment account for $120,000.
• C)credit to the Accumulated Depreciation account for $80,000.
• D)gain on disposal of $104,000.

---

Definitions:

Double-Masked

A study design in which neither the participants nor the researchers know which participants belong to the control group and which to the experimental group, to prevent bias.

Correlation

A statistical measure that describes the extent to which two variables change together, and the direction (positive or negative) of that relationship.

Magnitude

The size, extent, or importance of something, often quantified in terms of measurements or impact.

Case Study

An in-depth analysis of a particular subject, group, or event to explore causation in order to find underlying principles.