Francisco Purchased a Machine on Jan 1, 2010 for $750,000

question 105

Multiple Choice

Francisco purchased a machine on Jan 1, 2010 for $750,000. The machine had an estimated useful life of 5 years and an estimated residual value of $50,000. The company uses straight-line depreciation and records monthly depreciation. The machine was sold on December 31, 2013 for $140,000. What was the gain/loss on disposal of the machine?

• A)$10,000 gain.
• B)$10,000 loss.
• C)$50,000 gain.
• D)$50,000 loss.

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Definitions:

Accompanying Figure

Auxiliary visual material, such as a diagram or graph, provided to support or illustrate textual information.

Telomerase

An enzyme that adds telomere sequences to the ends of chromosomes, helping to maintain their integrity during cell division.

Telomeres

Protective caps at the end of chromosomes, playing a key role in cellular aging and division.

G2 Phase

The phase of the cell cycle following DNA synthesis and preceding cell division, during which the cell prepares to divide.