Bach Company Sold an Asset with a Book Value of $56,000

question 65

Multiple Choice

Bach Company sold an asset with a book value of $56,000 for $100,000 cash.Which of the following is a TRUE statement?

• A)Gain on sale equals $100,000 and Cash inflow equals $100,000.
• B)Gain on sale equals $56,000 and Cash inflow equals $56,000.
• C)Gain on sale equals $44,000 and Cash inflow equals $100,000.
• D)Gain on sale equals $100,000 and Cash inflow equals $46,000.

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Definitions:

Telegraphic Speech

Early speech stage in which a child speaks like a telegram—"go car"—using mostly nouns and verbs.

Grammatical Stage

A phase in child language development during which the understanding and use of grammatical structures improves.

Receptive Language

The ability to understand or comprehend language heard or read.

Productive Language

The ability to produce words, sentences, and expressions, a key milestone in language development.