A Machine with a Cost of $100,000 and Accumulated Depreciation

question 17

Multiple Choice

A machine with a cost of $100,000 and accumulated depreciation of $80,000 was sold at a loss of $6,000.What amount of cash was received from the sale?

• A)$26,000
• B)$14,000
• C)$20,000
• D)$94,000

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Definitions:

Promissory Note

A financial document constituting a written promise to pay a specified sum of money to a designated party on demand or at a predetermined date.

Intermediate Calculations

Intermediate Calculations involve the computations or mathematical operations performed as steps between the initial setup and the final result or outcome in a process.

125-Day Note

A short-term debt obligation that matures or is due to be paid in 125 days from its issuance date.

360-Day Year

A financial convention assuming a year has 360 days, often used in interest calculations.