An Asset Is Purchased on January 1 for $40,000

question 228

Multiple Choice

An asset is purchased on January 1 for $40,000.It is expected to have a useful life of five years after which it will have an expected residual value of $5,000.The company uses the straight-line method.If it is sold for $30,000 exactly two years after it is purchased,the company will record a:

• A)gain of $6,000.
• B)gain of $4,000.
• C)loss of $4,000.
• D)loss of $6,000.

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Definitions:

Semiconservative Replication

The method by which DNA is duplicated in all known cells, where each of the two strands of the DNA molecule serve as a template for the production of the complementary strand.

Double Helix

The spiral structure forming the shape of DNA molecules, consisting of two strands wound around each other.

New Strands

Refers typically to the newly synthesized strands of DNA or RNA following replication or transcription processes.

Adenine

One of the four nucleotide bases in DNA and RNA, which pairs with thymine in DNA and uracil in RNA.