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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:

HR Functions

Activities and responsibilities carried out by the human resources department, including recruitment, training, employee relations, and performance management.

Compensation System

A structured approach used by organizations to determine and provide wages, salaries, and benefits to employees.

Compensation Costs

Expenses incurred by employers to remunerate employees, including wages, salaries, bonuses, benefits, and any other forms of payment for services rendered.

Slipshod Attempt

A careless or poorly planned effort to accomplish a task, often leading to unsatisfactory or incomplete results.

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