Use the Following Information for Question 166 - 167

question 120

Multiple Choice

Use the following information for question 166 - 167.
Maverick Inc. exchanged an old vehicle for a new vehicle on August 31, 2014. The original cost of the vehicle was $45,000 on January 1, 2010. Depreciation was calculated using the straight line method over a ten-year useful life, with an estimated residual value of $3,000. The fair value of the old vehicle on August 31, 2014 was $21,500. The list price of the new vehicle was $30,000. Maverick received a $24,000 trade in allowance from the dealership and paid $6,000 cash for the new vehicle.
-As a result of this transaction, the company would record which of the following?

• A) DR. Loss on Disposal $3,900
• B) CR. Vehicle $23,500
• C) CR. Gain on Disposal $3,900
• D) Cr. Cash $24,000

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Definitions:

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is true.

P-Value

The probability of observing a test statistic at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Level of Significance

The probability of rejecting the null hypothesis when it is actually true, used as a threshold in hypothesis testing.

Test Statistic

A calculated value from a data sample used to test a hypothesis against some criteria.