MB Replaced a Major Component of Its Plant (Original Cost

question 91

Multiple Choice

MB replaced a major component of its plant (original cost of the component, $12,000 (60 percent depreciated) , with a new component that cost $17,500 in cash. Therefore, MB should make the following entry:

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

1) Accumulated amortization	7,200
Plant	17,500
Gain on disposal		7,200
Cash		17,500
2) Plant (or accumulated amortization)	17,500
Cash		17,500
3) Accumulated amortization	7,200
Plant		5,500
Loss on disposal		4,800
Cash		17,500
4) Plant	17,500
Loss on disposal	12,000
Plant		12,000
Cash		1,7500

---

Definitions:

Antisocial Personality Disorder

A psychiatric condition defined by consistent behavior that either ignores or breaches the rights of other individuals.

Psychodynamic Theorists

Psychologists who analyze personality and psychological disorders based on internal conflicts, unconscious processes, and childhood experiences.

Paranoid Personality Disorder

A mental condition characterized by a pervasive distrust and suspicion of others' motives.

Object Relationship Therapy

Object Relationship Therapy is a form of psychotherapy that examines the significance of interpersonal relationships in the formation of self-identity and the impact they have on emotional development and mental health.