A Company Exchanges Its Old Office Equipment and $60,000 for New

question 109

Multiple Choice

A company exchanges its old office equipment and $60,000 for new office equipment. The old office equipment has a book value of $42,000 and a fair value of $30,000 on the date of the exchange. The cost of the new office equipment would be recorded at

• A) $102,000.
• B) $90,000.
• C) $72,000.
• D) cannot be determined.

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Definitions:

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A technique for extracting oil and natural gas from rock by injecting high-pressure fluid to create fractures, allowing resources to be more easily harvested.

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The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in market balance.

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Nutella is a brand of sweetened hazelnut cocoa spread manufactured by the Italian company Ferrero, widely popular worldwide.

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Edible nuts produced by trees of the genus Corylus, known for their use in sweets and cooking.