A Photocopier Cost $95,000 When New and Has Accumulated Depreciation

question 143

Multiple Choice

A photocopier cost $95,000 when new and has accumulated depreciation of $90,000.If the business discards this plant asset,the result is ________.

• A)a loss of $5,000
• B)a loss of $11,250
• C)a gain of $5,000
• D)no gain or no loss

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Definitions:

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Monopolization

The process or state where a single company or entity gains exclusive control over a particular market or industry.

Natural Monopolies

A market dominated by a single seller because of high entry barriers or because the service or product is most efficiently supplied by a single provider.

Government Takeover

An acquisition where a government assumes control over a company or industry, often to stabilize the sector or protect national interests.