INTERMEDIATE ACCOUNTING(LL)W/LMS ACCESS
INTERMEDIATE ACCOUNTING(LL)W/LMS ACCESS
16th Edition
ISBN: 9781119287872
Author: Kieso
Publisher: WILEY
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Chapter 1, Problem 26Q
To determine

Sarbanes–Oxley Act: This is the act passed by the government for safeguarding investors from possible chances of fraudulent accounting activities of the corporation. The act authorized from stringent modifications to progress financial disclosures from corporations and preclude from accounting frauds.

To determine the Sarbanes–Oxley act and its provisions in accounting.

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During the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) ordinary income of $120,000. B) Sec. 1231 gain of $120,000. C) ordinary income of $90,000 and LTCL of $30,000. D) ordinary income of $85,000 and Sec. 1231 gain of $150,000.
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