A Plant Asset with a Cost of $240,000 and Accumulated

question 157

Multiple Choice

A plant asset with a cost of $240,000 and accumulated depreciation of $228,000 is sold for $28,000. What is the amount of the gain or loss on disposal of the plant asset?

• A) $28,000 loss.
• B) $16,000 loss.
• C) $16,000 gain.
• D) $28,000 gain.

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Definitions:

Expense Allocation

The process of distributing or assigning costs to different departments, projects, or cost centers within an organization.

Profit Margin

A financial metric used to assess a company's profitability by calculating the ratio of net income to revenue.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculating profit or loss relative to the amount of money invested.