Brown Ltd Purchased a Machine on the First Day of the Financial

question 8

Multiple Choice

Brown Ltd purchased a machine on the first day of the financial period, 1 July 2018, for $100 000. The machine was depreciated using the reducing balance method and a rate of 20 per cent. It was sold on 1 July 2019. If the machine was sold for $60 000, what was the gain or loss on disposal?

• A) Loss of $20 000
• B) Loss of $40 000
• C) Gain of $60 000
• D) Gain of $20 000

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Definitions:

High-Pressure Weather

refers to weather conditions associated with areas of high atmospheric pressure, often resulting in clear skies and dry weather.

Ocean Currents

Large-scale movements of seawater, primarily driven by wind patterns, temperature differences, and the Earth's rotation, which circulate water across the globe.

Surface Ocean Currents

Movements of ocean water that occur at or near the ocean's surface, driven by wind, the Coriolis effect, differences in temperature and salinity, and the shape of ocean basins.

Ocean Basins

The deep and extensive depression of the Earth's surface that contains the world's ocean waters, surrounded by continental landmasses.