Cripple Creek Inc

question 154

Multiple Choice

Cripple Creek Inc. Use the information presented below for Cripple Creek,Inc.for 2013 and 2012 to answer the questions that follow.Cripple Creek uses the straight-line depreciation method.
Refer to the information for Cripple Creek,Inc.
Between 2012 and 2013,Cripple Creek sold some equipment that had an original cost of $57,500.Which statement is most likely true concerning transactions that must have occurred during the period?

• A)Cripple Creek also purchased additional equipment during the year.
• B)The selling price of the equipment sold was reported with net sales.
• C)The equipment that was sold had a book value of $12,500.
• D)The equipment sold had not been reported with Cripple Creek's property,plant and equipment.

---

Definitions:

Perfection

In legal and financial contexts, it often relates to the process of securing a security interest in collateral, ensuring priority over other claims.

Financing Statement

A document filed by a creditor to indicate a security interest in the property of a debtor, used in securing loan agreements.

Perfection

In legal and finance contexts, the act of securing a priority interest in collateral to protect a secured loan or transaction.

Certificate of Deposit

A savings certificate entitling the bearer to receive interest, which has a fixed maturity date, and typically restricts withdrawal of funds before that date.