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:

Cash

Currency and other liquid instruments that are used to conduct transactions or settle debts.

Accounts Receivable

Funds that customers owe to a company for products or services already provided but not yet compensated for.

Accounts Payable

A bookkeeping record indicating a business's duty to settle a short-term financial debt with its lenders or vendors.

Cash Flows

The inflows and outflows of cash and cash equivalents, representing the operational, investing, and financing activities of a business.