James Company Has an Asset That Cost $5,000 and Currently

question 41

Multiple Choice

James Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate.
The loss on disposal would be:

• A) $350.
• B) $500.
• C) $650.
• D) $2,500.
• E) None, because the transaction produced a gain.

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Definitions:

Long-Range Strategic Plans

Strategic plans that outline an organization's goals, strategies, and actions over an extended period, usually three to five years or longer, to achieve long-term objectives.

Voluntary Family Activities

Activities organized and participated in by employees and their families outside of work, often sponsored or supported by the employer to promote work-life balance.

Duty to Accommodate

The legal and ethical obligation of employers to adjust working conditions or procedures to address the needs of employees with disabilities.

Canadian Human Rights Act

Legislation in Canada that prohibits discrimination on various grounds such as race, gender, and disability.