A Machine That Was Purchased for $120,000 Has Accumulated Depreciation

question 182

Multiple Choice

A machine that was purchased for $120,000 has accumulated depreciation of $90,000. The business exchanges the machine for a new one. The new machine has a market value of $130,000, and the business pays $120,000 cash. Assume the exchange has commercial substance. This exchange results in a ________.

• A) gain of $20,000
• B) gain of $10,000
• C) loss of $20,000
• D) loss of $30,000

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Definitions:

Venipuncture

The process of puncturing a vein with a needle to withdraw blood or insert fluids.

Evacuated collection tubes

Specialized tubes used in medical blood collection that are under vacuum to draw a predetermined volume of blood.

Phlebotomy

The practice of drawing blood from a vein, typically for laboratory testing or blood donation.

Morphology

The study of the shape or form of objects.