Answer A and B are the same.

Sorry about that! The original question is now updated and here is the correct answer.

Correct Answer: D

Explanation: The warranty of merchantability is implied by law if the seller is a merchant. One who ordinarily sells the product purchased would be a merchant. Since merchantability is an implied warranty, no written or oral words are needed for it to arise. The implied warranty of fitness for a particular purpose arises when the buyer relies on seller to select goods, not the warranty of merchantability. Merchantability, like all implied warranties, can be disclaimed.

Today's question: FAR

A company using the composite depreciation method for its fleet of trucks, cars, and campers retired one of its trucks and received cash from a salvage company. The net carrying amount of these composite asset accounts would be decreased by the:

A)   Cash proceeds received and original cost of the truck

B)   Cash proceeds received

C)   Original cost of the truck less the cash proceeds

D)  Original cost of the truck