Ayayai Corp. sold equipment for $43,000. The equipment had an original cost of $114,000 and accumulated depreciation of $54,000. Ignoring the tax effect, as a result of the sale: a. net income will increase by $43,000. b. net income will increase by $17,000. c. net income will decrease by $17,000. d. net income will decrease by $43,000.
Ayayai Corp. sold equipment for $43,000. The equipment had an original cost of $114,000 and accumulated depreciation of $54,000. Ignoring the tax effect, as a result of the sale: a. net income will increase by $43,000. b. net income will increase by $17,000. c. net income will decrease by $17,000. d. net income will decrease by $43,000.
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 11DQ
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Transcribed Image Text:Ayayai Corp. sold equipment for $43,000. The equipment had an
original cost of $114,000 and accumulated depreciation of
$54,000. Ignoring the tax effect, as a result of the sale:
a. net income will increase by $43,000.
b. net income will increase by $17,000.
c. net income will decrease by $17,000.
d. net income will decrease by $43,000.
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