Mogilny Company paid $135,000 for a machine. TheAccumulated Depreciation—Equipment account has abalance of $46,500 at the present time. The company couldsell the machine today for $150,000. The company presidentbelieves that the company has a “right to this gain.”What does the president mean by this statement? Do youagree?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 14PB: Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia...
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Mogilny Company paid $135,000 for a machine. The
Accumulated Depreciation—Equipment account has a
balance of $46,500 at the present time. The company could
sell the machine today for $150,000. The company president
believes that the company has a “right to this gain.”
What does the president mean by this statement? Do you
agree?

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