Use the Following to Answer Questions

question 81

Multiple Choice

Use the following to answer questions
Oceanside Enterprises is trading in its old fishing vessel for a new model. The old fishing vessel is on the books at a cost of $364,000 with accumulated depreciation of $314,600. The new fishing vessel has a list price of $538,000 but the manufacturer has agreed to reduce this by $75,000 in return for Oceanside's old fishing vessel.
-The new fishing vessel should be recorded on the books at a cost of:

• A)$538,000
• B)$512,400
• C)$463,000
• D)$488,600

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Definitions:

Lease Term

The duration of a lease agreement, specifying the start and end dates of the tenancy.

Tenancy at Sufferance

A situation where a tenant continues to occupy the property after the lease term has ended, without the express permission of the landlord.

Holdover Tenant

A tenant who continues to occupy property after the expiration of their lease, without the landlord's express permission.

Action to Eject

A legal process through which a landlord seeks to remove a tenant from a property due to a violation of lease terms.