Machinery Costing $123,000 with Zero Salvage Value Is No Longer

question 253

Multiple Choice

Machinery costing $123,000 with zero salvage value is no longer useful to the company and has no market value. If the machinery has been fully depreciated at the time of disposal, the entry to record the disposal would be:

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Definitions:

Maximize Profit

The process or strategy aimed at achieving the highest possible profit from business operations, often by increasing revenue, reducing costs, or both.

Profit-maximizing Quantity

The level of output at which a firm achieves its highest profit, where marginal cost equals marginal revenue.

Total Profit

The overall financial gain made by a business after subtracting all expenses from the total revenue.

Profit-maximizing Price

The price level at which a company can sell its product to achieve the maximum possible profit, taking into account demand and production costs.