Yvon Co, Which Has a Calendar Year Accounting Period, Purchased a a New

question 101

Essay

Yvon Co., which has a calendar year accounting period, purchased a new machine for $30,000 on April 1, 2013. At that time Yvon expected to use the machine for nine years and then sell it for $3,000. The machine was sold for $16,500 on September 30, 2018. Assume the use of straight-line amortization, no amortization in the year of acquisition, and a full year of amortization in the year of retirement. Calculate the gain to be recognized at the time of sale.

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Definitions:

Motor Cortex

The strip of tissue at the rear of the frontal lobes that controls voluntary body movement and participates in learning and cognitive events.

Association Areas

Regions of the cerebral cortex that integrate sensory and motor information, playing a key role in higher cognitive functions such as learning, memory, and decision-making.

Occipital Lobe

The visual processing center of the mammalian brain, located in the back of the skull.

Cerebral Hemisphere

One of the two symmetrical halves of the brain, each of which has distinct functions but they work together to process complex cognitive tasks.