On 31 December 2013 a Printing Machine with a Cost

question 38

Multiple Choice

On 31 December 2013 a printing machine with a cost of $380 000 has accumulated depreciation written off of $140 000. If it is sold for $220 000 on 1 January 2014 what will be the net effect of the sale on the income statement?

• A) $20 000 profit
• B) $20 000 loss
• C) $160 000 loss
• D) $80 000 profit

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Definitions:

Ordinal

Ordinal relates to a categorical, statistical data type which reflects ordered entities in which the order matters but the differences between the entities do not have a mathematical meaning.

Friedman Test

A non-parametric statistical test used to compare three or more matched or paired groups across multiple test conditions or times, assessing differences in rankings.

Ordinal Data

A type of categorical data that has a meaningful order or ranking among the categories but not a measurable distance between them.

Significance Level

A threshold in hypothesis testing that determines the probability of rejecting the null hypothesis when it is actually true, typically denoted by alpha.