At the Beginning of the Current Year, a Firm Purchased

question 111

Multiple Choice

At the beginning of the current year, a firm purchased an asset for $60,000 and estimates that it will have a useful life of six years and a salvage value of $6,000. The asset will be depreciated using the straight-line method. The asset was sold for $36.000 at the beginning of the fourth year of use. What is the amount of gain or loss recognized on the sale?

• A)$3,000 gain.
• B)$12,000 loss.
• C)$27,000 loss.
• D)$12,000 gain.

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Definitions:

Accidents

Unplanned, unforeseen events that can cause damage or injury due to a lack of intention or predictable cause.

Blindsight

A phenomenon where people who are perceptually blind in certain areas of their visual field demonstrate some response to visual stimuli without consciously perceiving them.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, facilitating complex tasks like vision and motor control.

Change Blindness

A phenomenon where observers fail to notice changes in a visual scene, indicating limitations in attention and perception.