Use the Information Below to Answer the Following Questions

question 53

Multiple Choice

Use the information below to answer the following questions:
Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of 4 years.
-Consider the following transactions:
(i) Equipment with a book value of $100 000 is sold for $130 000 cash.
(ii) Land is revalued upwards from $1m to $1.5m.The land has not previously been revalued downwards.
Which of the above transactions increases or decreases profits?

• A) (i)only
• B) (ii)only
• C) (i)and (ii)only
• D) Neither.

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Definitions:

Sebaceous Glands

Small oil-producing glands present in the skin of mammals, secreting sebum to lubricate skin and hair.

Testes

The male reproductive glands that produce sperm and testosterone.

Spermatic Cord

A bundle of fibers and tissues forming a cord-like structure that runs through the abdominal region to the testes.

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatogenesis occurs, producing sperm.