Use the Information Below for Shorter Inc

question 47

Multiple Choice

Use the information below for Shorter Inc. for 2015 and 2016 to answer the following question. During 2016, Shorter Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment this was the only equipment sale during the year.
Assume that all purchases of equipment were paid with cash. How much cash was paid by Shorter for the purchase of equipment during 2016?

• A) $7,000
• B) $30,000
• C) $37,000
• D) $72,000

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Definitions:

Hindsight Bias

The tendency to falsely believe, through revision of older memories to include newer information, that one could have correctly predicted the outcome of an event.

Childhood Reminisce

The act or process of recalling and sharing memories from one's childhood.

Flashbulb Memories

Type of automatic encoding that occurs because an unexpected event has strong emotional associations for the person remembering it.

Events

Broad term that encompasses occurrences or happenings that are significant to the individual or group observing them.