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:

Forced Sex

involves engaging in sexual activities with another individual against their will through coercion, manipulation, or physical force.

Anger

A strong feeling of annoyance, displeasure, or hostility resulting from perceived mistreatment, opposition, or injustice.

Revenge

The act of retaliating or taking action against someone in order to punish or inflict harm for a perceived wrong or injury.

Courage

The mental or moral strength to venture, persevere, and withstand danger, fear, or difficulty.