A Plant Asset with a Cost of $480,000 and Accumulated

question 214

Multiple Choice

A plant asset with a cost of $480,000 and accumulated depreciation of $456,000 is sold for $56,000. What is the amount of the gain or loss on disposal of the plant asset?

• A) $56,000 loss.
• B) $32,000 loss.
• C) $32,000 gain.
• D) $56,000 gain.

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Definitions:

Shared Understanding

A condition wherein all members of a group or team have a common and consistent comprehension of information, objectives, or tasks.

Psychographics

The study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research.

Communication Process

The sequence of steps through which information is transmitted from a sender to a receiver, involving encoding, medium selection, decoding, and feedback.

NASCAR

The National Association for Stock Car Auto Racing, a sanctioning body that oversees various types of auto racing in the United States.