A Machine That Was Purchased for $110,000 Has Accumulated Depreciation

question 110

Multiple Choice

A machine that was purchased for $110,000 has accumulated depreciation of $70,000.The business exchanges the machine for a new one.The new machine has a market value of $140,000,and the business pays $110,000 cash.Assume the exchange has commercial substance.This exchange results in a ________.

• A) gain of $10,000
• B) gain of $5000
• C) loss of $10,000
• D) loss of $40,000

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Definitions:

White House

The official residence and workplace of the President of the United States, located in Washington, D.C.

House

A legislative body or chamber, often part of a bicameral government system, such as the House of Representatives in the United States.

Party Unity

The degree to which members of a political party share common goals and demonstrate a collective stance on legislative and policy issues.