Use the Information Below to Answer the Following Questions

question 14

Multiple Choice

Use the information below to answer the following questions.
Brown Ltd purchased a machine on the first day of the financial period, 1 July 2010, for $100,000. The machine was depreciated using the reducing balance method and a rate of 20%. It was sold on 1 July 2011.
-If the machine was sold for $60 000,what was the gain or loss on disposal?

• A) loss of $20 000
• B) loss of $40 000
• C) gain of $60 000
• D) gain of $20 000.

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Definitions:

Appositional

A mode of growth by the addition of new layers on the surface of existing tissues or structures.

Oppositional

Refers to movements involving resistance or actions that counteract another, often used in the context of psychology or physical movements.

Spongy Bone

A type of bone tissue characterized by a porous, lightweight structure, found at the ends of long bones and in the interior of other bones.

Compact Bone

Dense bone tissue that forms the outer layer of bone, providing strength and structure.