Ignoring Tax Consequences, How Should the Gain or Loss on Disposal

question 27

Multiple Choice

Ignoring tax consequences, how should the gain or loss on disposal of an old machine be treated in an equipment replacement decision?

• A)used to defray installation costs of the new machine
• B)deducted from the accumulated amortization
• C)deducted from the cost of the new machine
• D)added to the accumulated amortization (or deducted from the cost)of the old machine
• E)It is irrelevant.

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Definitions:

Time

A measurable period during which actions, processes, or conditions exist or take place.

Limited Period

A specific timeframe with defined beginning and end points.

Integrative Negotiations

A negotiation strategy focused on creating mutually beneficial agreements by maximizing value for all parties involved.

Labor Relations

A study and practice focused on managing relationships between employers and employees, often involving unions.