[The Following Information Applies to the Questions Displayed Below

question 144

Multiple Choice

[The following information applies to the questions displayed below.]
An analysis of changes in selected balance sheet accounts of Hierarchy Corporation shows the following for the current year:
Hierarchy's income statement for the current year includes a $9,600 gain on disposal of plant assets.All payments and proceeds relating to purchase or sale of plant assets were in cash.
-Total cash proceeds received by Hierarchy from sales of plant assets during the current year amounted to:

• A)$696,000.
• B)$705,600.
• C)$633,600.
• D)$768,000.

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Definitions:

Logical Arguments

Reasoning structured in a way that follows principles of logic, typically involving premises that lead to a conclusion.

Hypothesis

A potential explanation that needs to be tested.

Potential Explanation

A possible reason or rationale that could clarify or account for a specific phenomenon or situation.

Yardstick Approach

A method of decision-making that involves comparing alternative actions against a predefined standard or "yardstick."