On January 2,2017,Hannah Company Sold a Machine for $1,000 That

question 58

Multiple Choice

On January 2,2017,Hannah Company sold a machine for $1,000 that it had used for several years.The machine cost $12,000 and had accumulated depreciation of $9,000 at the time of sale.What gain or loss will be reported on the income statement for the sale of the machine?

• A)Gain of $2,000
• B)Loss of $11,000
• C)Loss of $2,000
• D)Gain of $3,000

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Definitions:

Information Ratio

Ratio of alpha to the standard deviation of diversifiable risk.

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.

Market Index

A statistical measure that represents the overall performance of a selected set of stocks, designed to reflect the movements and trends of the market or a specific sector.