Q1. Spenser Inc. owns a piece of specialized machinery with a current fair value of $400,000. The original cost of the machinery was $500,000 and to date has generated accumulated depreciation of $140,000. Which of the following must Spenser record on the income statement if it decides to abandon the asset? A) Gain of $40,000. B) Loss of $360,000. C) Loss of $100,000.
Q2. Felker Inc. owns a piece of specialized machinery. The original cost of the machinery was $500,000 and to date there is an accumulated depreciation balance of $140,000. Which of the following will Felker recognize on its income statement if it sells the machinery for $400,000? A) Loss of $100,000. B) Gain of $40,000. C) Loss of $360,000.
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发表于 2009-1-19 10:17
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