Malone Company Traded in an Old Machine with a Book

question 51

Multiple Choice

Malone Company traded in an old machine with a book value of $15,000 on a new machine. The exchange did not have commercial substance. The new machine, which had a cash price of $75,000, was purchased for $64,000 cash plus the old machine. Malone should record the cost of the new machine as

• A) $64,000.
• B) $71,000.
• C) $75,000.
• D) $79,000.

---

Definitions:

A Band

The dark area observed in the sarcomere of skeletal and cardiac muscle fibers, consisting of thick myosin filaments.

Connective Tissue

A type of body tissue that supports, connects, or separates different types of tissues and organs in the body.

Muscle Fibers

The elongated cells or fibers that makeup skeletal muscles, responsible for contracting and generating force.

Endomysium

A thin layer of connective tissue that surrounds each muscle fiber, providing structural support and facilitating nutrient exchange.