Use the Following Information for Questions 108 and 109

question 151

Multiple Choice

Use the following information for questions 108 and 109.
A machine cost $600,000, has annual depreciation of $100,000, and has accumulated depreciation of $450,000 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $137,500, it is exchanged for a machine with a fair value of $675,000 and the proper amount of cash is paid. The exchange had commercial substance.
-The gain to be recorded on the exchange is

• A) $0.
• B) $12,500
• C) $25,000
• D) $75,000

---

Definitions:

Frailty

A condition often associated with aging, characterized by decreased strength, endurance, and reduced physiological function, making an individual more vulnerable to falls, disability, and disease.

Elderly

A term referring to individuals who are significantly beyond the middle age, often considered to be 65 years and older.

Secure Attachments

A type of attachment characterized by feelings of safety and security in relationships, often resulting from consistent and caring responses from caregivers in early childhood.

Siblings

Brothers or sisters; individuals having one or both parents in common.