A Plant Asset with a Cost of $600,000 and Accumulated

question 124

Multiple Choice

A plant asset with a cost of $600,000 and accumulated depreciation of $570,000 is sold for $70,000.What is the amount of the gain or loss on disposal of the plant asset?

• A)$70,000 loss
• B)$40,000 loss
• C)$40,000 gain
• D)$70,000 gain

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Definitions:

Marginal Revenue Curve

The marginal revenue curve represents the change in total revenue that results from selling one more unit of a product.

Crude Oil Production

The process of extracting oil from underground reservoirs and preparing it for refining into usable products such as gasoline, diesel, and other petrochemicals.

Effective Collusion

coordination between competing firms to control prices or market shares in a way that benefits the entities involved, often at the expense of fair market competition.

Oligopolistic Collusion

When a few firms in an oligopoly market secretly agree to fix prices, limit production, or divide markets among themselves to reduce competition and increase profits.