Apex Corporation sold machinery for $57,000. The machinery had an original cost of $135,000 and accumulated depreciation of $62,000. Ignoring the tax effect, as a result of the sale: a. net income will increase by $57,000. b. net income will decrease by $16,000. c. net income will increase by $16,000. d. net income will decrease by $57,000.
Apex Corporation sold machinery for $57,000. The machinery had an original cost of $135,000 and accumulated depreciation of $62,000. Ignoring the tax effect, as a result of the sale: a. net income will increase by $57,000. b. net income will decrease by $16,000. c. net income will increase by $16,000. d. net income will decrease by $57,000.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 11DQ
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Ignoring the tax effect
Transcribed Image Text:Apex Corporation sold machinery for $57,000.
The machinery had an original cost of $135,000
and accumulated depreciation of $62,000.
Ignoring the tax effect, as a result of the sale: a.
net income will increase by $57,000. b. net
income will decrease by $16,000. c. net income
will increase by $16,000. d. net income will
decrease by $57,000.
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