Ignoring Tax Consequences, How Should the Gain or Loss on Disposal

question 27

Multiple Choice

Ignoring tax consequences, how should the gain or loss on disposal of an old machine be treated in an equipment replacement decision?

• A)used to defray installation costs of the new machine
• B)deducted from the accumulated amortization
• C)deducted from the cost of the new machine
• D)added to the accumulated amortization (or deducted from the cost)of the old machine
• E)It is irrelevant.

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Definitions:

Psychological Footprint

The lasting effects of an individual's emotional, mental, and social experiences on their psychological state.

Disaster

A sudden, catastrophic event causing significant damage, distress, and often loss of life, affecting society and the environment.

Depersonalization

A psychological experience where individuals feel detached from their own thoughts, feelings, or sense of identity.

Idealism

A philosophical approach that posits reality is based on ideas, values, or ideals, often leading to the belief in a perfect state of being.