On January 1,2016,Horton Inc

question 161

Multiple Choice

On January 1,2016,Horton Inc.sells a machine for $23,000.The machine was originally purchased on January 1,2014 for $40,000.The machine was estimated to have a useful life of 5 years and a residual value of $0.Horton uses straight-line depreciation.In recording this transaction:

• A) a loss of $1,000 would be recorded.
• B) a gain of $1,000 would be recorded.
• C) a loss of $17,000 would be recorded.
• D) a gain of $23,000 would be recorded.

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Definitions:

Emigration

The act of leaving one's resident country or region with the intent to settle elsewhere.

Total Output

Total output is the overall quantity of goods or services produced by a company, sector, or economy within a certain period.

Labor Cost

The total sum of all wages paid to employees, as well as the costs of employee benefits and payroll taxes paid by an employer.