Creek Construction Purchased a Machine for $26,000

question 158

Multiple Choice

Creek Construction purchased a machine for $26,000.It traded in an old machine and received a $4,200 trade-in allowance.The old machine cost $24,000 and had accumulated depreciation of $16,000 to the date of trade-in.At what value should be new asset be recorded?

• A)$21,800
• B)$24,000
• C)$26,000
• D)$29,800
• E)$30,200

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Definitions:

Hydrophobic Nature

A property of molecules or substances that repel water or are not easily soluble in water.

−OH Group

Hydroxyl group, a functional group consisting of an oxygen atom connected to a hydrogen atom, influencing the molecular properties of alcohol.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, which controls the entry and exit of substances.

Phospholipids

A type of fat molecule that forms the main structural component of cell membranes.