Malea Sold a Machine for $140,000

question 10

Multiple Choice

Malea 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 contract price is

• A)$40,000.
• B)$80,000.
• C)$100,000.
• D)$130,000.

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Definitions:

Competitive Fringe

Small, less dominant firms in a market that compete at the periphery with the larger dominant firms, often by focusing on niche segments.

Price Leader

A company that has a dominant market share and can influence the pricing policies of competitors within the industry.

Dominant Firm Model

A market structure where one firm has a large market share and sets prices, while other smaller firms follow its pricing strategy.

Fringe Firms

Smaller companies in a market that compete alongside larger firms, often by serving niche segments or employing innovative strategies to maintain market presence.