An Entity Acquired an Item of Machinery in Exchange for a Motor

question 3

Multiple Choice

An entity acquired an item of machinery in exchange for a motor vehicle. The carrying amount of the machinery is $8000 and its fair value is $10 000. The journal entry to record the acquisition of the machinery will include:

• A) a loss on acquisition of $2000.
• B) a gain on sale of $2000.
• C) proceeds on sale of motor vehicle of $2000.
• D) proceeds on sale of machinery of $2000.

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Definitions:

Abdominal Hysterectomy

A surgical procedure to remove a woman's uterus through an incision in the abdomen.

Hip Surgery

Medical procedures performed to repair or replace parts of the hip joint to alleviate pain or restore function, often due to arthritis or injury.

Genotype

An individual’s genetic heritage; their actual genetic material.

Phenotype

An individual’s observable characteristics.