Bunker Construction Company Recently Exchanged an Old Truck, Which Cost

question 71

Multiple Choice

Bunker Construction Company recently exchanged an old truck, which cost $108,000 and was one-third depreciated, and paid $70,000 cash for a used crane having a current fair value of $130,000. Assuming the exchange has commercial substance, at what amount should the crane be recorded on the books of Bunker?

• A) $70,000
• B) $108,000
• C) $130,000
• D) $142,000

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Definitions:

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A Marketing Director is a professional responsible for leading and guiding a company's marketing efforts and strategies.

Munitions Company

A company specializing in the production and supply of military weapons, ammunition, and related equipment.

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The study of principled reasoning, identifying valid arguments and correct inferences.

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Having a strong willingness or enthusiasm to do something, often driven by internal desires or external incentives.