Scandsia Ltd

question 45

Multiple Choice

Scandsia Ltd. owns a machine that it purchased on Jan 1, 2019 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, 2022 for $200,000. What is the carrying value (net book value) at the date of sale?

• A)$10,000
• B)$150,000
• C)$190,000
• D)$560,000

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Definitions:

Asset Base

The aggregate of all the resources owned by a person or organization, which can potentially be used to generate income.

Nonbankable Gaps

Funding or credit needs of a business that cannot be met by traditional bank financing, usually requiring alternative sources of capital.

Entrepreneurial Finance

The study and application of financial resources and tools to start, grow, or sustain entrepreneurial ventures.

Fund-Raising Strategies

Techniques and approaches used to generate financial support for a cause, project, or organization, often involving various forms of solicitation and campaigns.