WC Purchased an Asset That Had a List Price of $25,000

question 8

Multiple Choice

WC purchased an asset that had a list price of $25,000 and a cash price of $22,500. WC paid for this asset by paying $3,750 cash and trading in an old asset that originally cost $37,500 (accumulated amortization to date, $19,000) . The two assets are dissimilar. WC should recognize a gain or loss of:

• A) $250 gain.
• B) $1,750 gain.
• C) $2,750 gain.
• D) $2,000 loss.

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Definitions:

ANOVA

Short for Analysis of Variance, a set of statistical techniques used to compare the means of three or more samples.

Factor

An element that contributes to a particular result or situation, often used as a variable in experiments and statistical analysis.

Levels

Distinct and gradated stages within a hierarchy or process.

Factor

A variable that is manipulated in an experiment to determine its effect on the dependent variable, or a value that influences results in various contexts.