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NEW QUESTION: 1
A company purchases a piece of machinery for $180,000. It is estimated that the machinery will produce
450,000 units over its useful life of 10 years. The residual value at the end of 10 years is nil. After eight years, the machine has produced 340,000 units and is sold for $30,000.
The profit/loss arising on disposal of the asset is
A. $6,000 profit
B. $14,000 loss
C. $14,000 profit
D. $6,000 loss
Answer: B

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