A Machine Was Purchased for $40,000

question 124

Multiple Choice

A machine was purchased for $40,000. It has a current carrying value of $26,000 and had a depreciable cost of $36,000. Its estimated residual value must have been

• A) $4,000.
• B) $10,000.
• C) $14,000.
• D) impossible to determine from the facts given.

---

Definitions:

Merchandise

Goods that are bought and sold in business; the commodities or products available in the market.

Atmospherics

The use of space, color, lighting, scents, and sounds within a retailer's environment to influence the perception and behavior of customers.

Unique Image

A distinctive visual or brand identity that sets a product, person, or company apart from its competitors.

Shopping

The act of browsing, selecting, and purchasing goods or services from retailers, either in-store or online.