When an Exchange of Similar Assets Involves a Gain

question 57

Multiple Choice

When an exchange of similar assets involves a gain,

• A) the recorded amount of the new asset is the cost of the old asset plus any cash paid.
• B) the recorded amount of the new asset is its fair market value less any cash paid.
• C) the recorded amount of the new asset is the net book value of the old asset plus any cash paid.
• D) None of these are true.

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Definitions:

High-speed Memory

Memory modules capable of fast data transfer rates, significantly enhancing computing performance.

Secondary Storage

Non-volatile storage that keeps data persistently saved even when not in active use, such as hard drives, SSDs, or cloud storage.

Tertiary Storage

A form of data storage that typically involves removable media with high capacity, used for archiving or backup purposes.

Quaternary Storage

A type of data storage system designed to store large volumes of data using optical or magnetic technology, often for archival purposes.