Use the Following Information for Questions

question 84

Multiple Choice

Use the following information for questions
Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a fair value of $48,000 and $12,000 cash is received.The exchange lacked commercial substance.
-The gain to be recognized from the exchange is

• A)$4,800 gain.
• B)$6,000 gain.
• C)$18,000 gain.
• D)$24,000 gain.

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Definitions:

Robert Butler

An American gerontologist known for his work on aging and mental health, and for coining the term "ageism."

Slow-to-warm Babies

Refers to a temperamental category where infants are initially hesitant about new experiences but gradually become more comfortable with repeated exposure.

Thomas and Chess

Psychologists who developed a model categorizing infants into three types of temperament: easy, difficult, and slow-to-warm-up.

Continuity Theory

The theory suggesting that people need to maintain their desired level of involvement in society in order to maximize their sense of well-being and self-esteem.