The Records of Pam Company Showed the Following About a Machine

question 106

Multiple Choice

The records of Pam Company showed the following about a machine on January 1, 20X8: Purchased 1/1/20X5 for $35,000 Accumulated depreciation at January 1, 20X8, $26,400 On July 1, 20X8, the machine was sold for $7,000. Depreciation for the first six months of 20X8 was $1,467. The gain or loss on disposal would be which of the following?

• A) $133 loss.
• B) $133 gain.
• C) $1,600 loss.
• D) $1,600 gain.

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Definitions:

Probabilities

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Error Management Theory

This evolutionary psychology theory suggests that humans are biased toward making the type of error that is less costly in terms of evolutionary fitness.

Interpretations

The act of explaining or making sense of information, events, or behaviors, often influenced by one's personal perspective or theoretical framework.