King Edward Company Reported Plant Assets, Net of Accumulated Depreciation

question 38

Multiple Choice

King Edward Company reported plant assets, net of accumulated depreciation, on January 1, 2008, at $437,500 and $589,300 on December 31, 2008. The income statement showed depreciation of $39,200. King Edward Company acquired $287,000 of plant assets during the year and reported proceeds from the sale of plant assets of $89,200 for the year. The gain or loss resulting from the sale of plant assets was a:

• A)$3,400 loss.
• B)$6,800 loss.
• C)$5,050 gain.
• D)$3,920 loss.

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Definitions:

Guanines

One of the four main nucleobases found in the nucleic acids DNA and RNA, pairing with cytosine.

Cisplatin Molecule

A platinum-based chemotherapy drug used in the treatment of various cancers, known by its chemical formula of Pt(NH3)2Cl2.

Square Planar

A molecular geometry that describes molecules with four atoms or groups of atoms arranged at the corners of a square plane surrounding a central atom.

Octahedral

A shape having eight faces, often referring to the geometric arrangement around a central atom in a molecule.