On January 1, 2010, Herschel Locks Corporation Purchased Drilling Equipment

question 34

Multiple Choice

On January 1, 2010, Herschel Locks Corporation purchased drilling equipment for $11,500. The equipment has an estimated useful life of four years and a salvage value of $200. Assuming that Herschel uses the straight-line method of depreciation, if it trades the equipment for new equipment with a list price of $15,500 on December 31, 2011, and pays $4,050 in the exchange, assuming the exchange lacks commercial substance, the new equipment should be recorded at

• A) $15,500.
• B) $11,450.
• C) $9,850.
• D) $9,900.

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Definitions:

Referent Power

A type of influence based on the attractiveness and charisma of the leader, leading others to identify with or emulate them.

Interpersonal Attractiveness

The degree to which a person is perceived as likeable, desirable, or worth engaging with in a social or romantic context.

Friendliness

A behavior or attitude that is hospitable, welcoming, and kind towards others.

Influencing Responses

Communications in therapy designed to guide or encourage clients toward positive behavioral or cognitive changes.