The Records of Pam Company Showed the Following About a Machine

question 61

Multiple Choice

The records of Pam Company showed the following about a machine on January 1,20H: Purchased 1/1/20E for $35,000
Accumulated depreciation at January 1,20H,$26,400
On July 1,20H,the machine was sold for $7,000.Depreciation for the first six months of 20H was $1,467.The gain or loss on disposal would be which of the following?

• A)$133 loss
• B)$133 gain
• C)$1,600 loss
• D)$1,600 gain

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Definitions:

Issuing Debt

The act of a corporation or governmental entity raising money by selling bonds or notes to investors.

Cash Dividends

Payments made by a company to its shareholders from its profit or retained earnings.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Operating Activities

Transactions and other events that are not investing or financing activities, relating to the primary operations of a business.