A piece of machinery cost $50,000.00 when purchased and has been depreciated half of its value. Assuming the machinery can be sold for $30,000.00, how much accounting profit does the machinery generate?

A) -$20,000.00
B) $5,000.00
C) $30,000.00
D) $25,000.00

Question

Abrar Alaraj · Accepted Answer

Final Answer : B, Explanation :  The machinery was depreciated to half of its original value, so its book value is $25,000.00 ($50,000.00 / 2). Selling it for $30,000.00 generates an accounting profit of $5,000.00 ($30,000.00 - $25,000.00).

A piece of machinery cost $50,000.00 when purchased and has been depreciated half of its value. Assuming the machinery can be sold for $30,000.00, how much accounting profit does the machinery generate?

A) -$20,000.00
B) $5,000.00
C) $30,000.00
D) $25,000.00

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Learning Objectives

Related questions

A piece of machinery cost $50,000.00 when purchased and has been depreciated half of its value. Assuming the machinery can be sold for $30,000.00, how much accounting profit does the machinery generate?A) -$20,000.00B) $5,000.00C) $30,000.00D) $25,000.00

Definitions

Learning Objectives

Learning Objectives

Related questions

A piece of machinery cost $50,000.00 when purchased and has been depreciated half of its value. Assuming the machinery can be sold for $30,000.00, how much accounting profit does the machinery generate?

A) -$20,000.00
B) $5,000.00
C) $30,000.00
D) $25,000.00