A Piece of Machinery Cost $50,000

question 118

Multiple Choice

A piece of machinery cost $50,000.00 when purchased and has been depreciated half of its value. Assuming the machinery can be sold for $30,000.00, how much accounting profit does the machinery generate?

• A)-$20,000.00
• B)$5,000.00
• C)$30,000.00
• D)$25,000.00

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Definitions:

Confiscation

The act of seizing property by authority, often without compensation, for legal or government use.

Expropriation

The act by a government of taking privately owned property to public use, typically with compensation to the owners.

Payment Of Compensation

The process of providing financial remuneration to an individual or entity for loss, damage, or injury.

Franchising

A business model that allows individuals to own and operate their own business using the branding and systems of an established company.