Use the Following Information for Questions 112 Through 114

question 65

Multiple Choice

Use the following information for questions 112 through 114.
Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following information was obtained: The exchange was made, and based on the difference in appraised fair values, Shaw paid $60,000 to Hager. The exchange lacked commercial substance.
-For financial reporting purposes, Hager should recognize a pre-tax gain on this exchange of

• A) $0.
• B) $12,000.
• C) $60,000.
• D) $96,000.

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Definitions:

Locked-rotor

Locked-rotor refers to a condition where the rotor of an electric motor cannot turn despite electrical current being applied, often due to mechanical obstruction or overload.

Locked-rotor

A condition where the motor's rotor is unable to move or rotate, typically due to excessive load or mechanical obstruction.

NEMA Design B

A specification by the National Electrical Manufacturers Association for standard efficiency induction motors with normal torque and low starting current.

Full-load Speed

The speed at which a motor operates when it is carrying its rated load.