The Pizza Store Trades in a Delivery Car for a Newer

question 128

Multiple Choice

The Pizza Store trades in a delivery car for a newer model.The old delivery car has a cost of $9,000 and accumulated depreciation of $8,000.The Pizza Store pays cash of $10,000.The fair value of the newer car is $16,000.What is the gain or loss for the Pizza Store on the exchange of vehicles?

• A)$1,000 Loss
• B)$1,000 Gain
• C)$5,000 Gain
• D)$6,000 Gain

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Definitions:

Ideal

A concept or standard of perfection that is aspired to; often used in the context of goals, values, or qualities that are deemed to be the most desirable.

Ought

A term expressing duty, correctness, or moral obligation, indicating what should be done.

Self-assessment

The process of evaluating one's own thoughts, feelings, behaviors, and abilities, often in relation to personal goals or standards.

Psychology

The science that studies behavior and the physiological and mental processes that underlie it and the profession that applies the accumulated knowledge of this science to practical problems.