Sela Sold a Machine for $140,000

question 34

Multiple Choice

Sela sold a machine for $140,000.The machine originally cost $90,000 and $10,000 of MACRS depreciation had been allowable.The buyer assumed an existing loan of $40,000,paid $20,000 cash down and agreed to pay $10,000 per year for eight years plus interest.Selling expenses are $10,000.The total gross profit for installment sale recognition purposes is

• A)$30,000.
• B)$40,000.
• C)$50,000.
• D)$60,000.

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Definitions:

Hypnotic Suggestion

A technique used in hypnosis where the hypnotist guides the subject's imagination towards specific outcomes or changes in perceptions, feelings, or behaviors.

Iatrogenic Condition

A health problem that is caused by medical treatment or intervention, rather than the underlying disease itself.

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality identities within a single individual.

La Belle Indifference

A term used in psychology to describe a condition where a person is inappropriately indifferent to their physical symptoms or disability.