Machine-translated by Google. Questions are authored in English.
Top

Discussion

None of the following belongs in the defender's cost of retention except

  • A.the depreciation charged in past years
  • B.the original invoice price of the asset
  • C.the interest paid on the loan that financed it
  • D.the market value forgone by not selling

Answer: D

Correct answer: the market value forgone by not selling

Only the forgone market value is a cost of retaining the asset, being money the business could have had and chose not to take. Past depreciation, the original invoice price and interest already paid are all sunk - unaffected by the decision and therefore excluded from both sides of it.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.