If an Asset Is Exchanged for a Similar Asset,a Gain

question 32

Multiple Choice

If an asset is exchanged for a similar asset,a gain results:

• A)when the book value of the old asset is greater than what is received for the trade-in allowance.
• B)when the book value of the old asset is less than what is received for the trade-in allowance.
• C)when the accumulated depreciation equals the cost of the old asset.
• D)None of these answers is correct.

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Definitions:

Abdominal Fat

The accumulation of fat in the abdomen area, often associated with increased health risks.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, heart failure, and stroke.

Prediabetes

A condition where blood sugar levels are higher than normal but not yet high enough to be diagnosed as type 2 diabetes, indicating a high risk for developing diabetes.

Complications

Secondary conditions, diseases, or symptoms that develop in addition to an initial disease or condition, often exacerbating the situation or making treatment more difficult.