A Photocopier Cost $104,000 When New and Has Accumulated Depreciation

question 190

Multiple Choice

A photocopier cost $104,000 when new and has accumulated depreciation of $95,000.If the business discards this plant asset,the result is ________.

• A) a loss of $9000
• B) a loss of $95,000
• C) a gain of $9000
• D) no gain or no loss

---

Definitions:

Interim Financial Statements

Interim financial statements are reports covering a less than full fiscal year, typically quarterly or half-yearly, providing insight into a company's financial performance during the period.

One-Year Period

A timeframe of twelve consecutive months used for financial reporting, planning, and assessment purposes.

Accrual Basis

An accounting method where revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is exchanged.

Recognizes Revenues

The process of recording revenue in the financial statements when it is earned and realizable, in accordance with the revenue recognition principle.