On 31 December 2014 an Aeroplane with a Cost of $200

question 29

Multiple Choice

On 31 December 2014 an aeroplane with a cost of $200 000 has had accumulated depreciation written off of $170 000. If it was sold for a profit of $30 000 on 1 January 2015 how much was recorded as income from the proceeds of the sale?

• A) $30 000
• B) $60 000
• C) Nil
• D) $200 000

---

Definitions:

Output

The total amount of goods or services produced by a person, machine, or company.

Producing Units

Entities, such as factories or workshops, involved in the manufacture of goods or the provision of services.

Efficient Scale

The level of production at which a firm's average costs are minimized, and efficiency is maximized.

Production

The process of creating goods and services through the combination of labor, materials, and technology.