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

---

Definitions:

Active Management

A strategy where a fund manager makes specific investments with the goal of outperforming an investment benchmark index.

Growth Limitations

Growth limitations refer to the factors or conditions that can hinder or restrain the expansion or progress of a company or economy.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income, it can occur when income is taxed at both the corporate level and personal level.

Debt Obligations

The amount of money that a company or individual must repay to lenders, including both the principal and interest.