BIG Copurchased a Piece of Class 8 Machinery in June of of 2018.The

question 6

Multiple Choice

BIG Co.purchased a piece of Class 8 machinery in June of 2018.The cost of the machine was $5,000.In 2020 the machine was sold for proceeds of $2,000 and there were no other purchases or disposals during the year.The UCC in the Class 8 pool was $5,500 at the beginning of 2020.What is the UCC of this class at the end of 2020?

• A)$700
• B)$2,800
• C)$3,500
• D)$4,800

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Definitions:

Instrument

A legal document that formally documents a legal or financial transaction or agreement.

Shelter Rule

A legal principle that protects buyers in good faith of personal property under the Uniform Commercial Code from subsequent claims of ownership.

Common Law

A legal system based on court decisions and customs, as opposed to written laws.

Comparative Negligence

A legal doctrine that reduces the amount of damages that a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injuries.