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Alpha Sold Machinery, Which It Used in Its Business, to Beta

question 29

Multiple Choice

Alpha sold machinery, which it used in its business, to Beta, a related entity, for $40,000. Beta used the machinery in its business. Alpha bought the equipment a few years ago for $50,000 and has claimed $30,000 of depreciation expense. What is the amount and character of Alpha's gain?


Definitions:

Single-Entry System

An accounting method where each financial transaction is recorded with a single entry to the accounting records.

Formatted Screens

Refers to digital displays or interfaces that have been organized or structured in a specific way for ease of use and readability.

Patient Accounts

Refers to the financial records and management of a patient's charges, payments, and balances within a healthcare facility.

Vendors

Businesses or individuals that sell goods and services.

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