Compute the Gain or Loss Relating to the Land That

question 115

Multiple Choice

Compute the gain or loss relating to the land that will be reported in consolidated net income for 2019.

• A) $ 5,000 loss.
• B) $ 7,000 gain.
• C) $12,000 gain.
• D) $ 7,000 loss.
• E) $12,000 loss.

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Definitions:

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.

Down Payment

An initial upfront portion of the total amount due, often associated with the purchase of expensive goods like homes or cars, which is paid at the time of the sale.

Term Deposit

A deposit at a financial institution that has a fixed term and typically offers a higher interest rate than a regular savings account.

Simple Interest

A method of calculating interest where the charge is based on the original principal amount alone, without compounding.