Hardin Company Received $80,000 in Cash and a Used Computer

question 152

Multiple Choice

Hardin Company received $80,000 in cash and a used computer with a fair value of $240,000 from Page Corporation for Hardin Company's existing computer having a fair value of $320,000 and an undepreciated cost of $300,000 recorded on its books. The transaction has no commercial substance. How much gain should Hardin recognize on this exchange, and at what amount should the acquired computer be recorded, respectively?

• A) $0 and $220,000
• B) $1,537 and $221,537
• C) $20,000 and $240,000
• D) $80,000 and $300,000

---

Definitions:

Individual Contributions

The unique skills, ideas, or efforts an individual brings to a team or project.

Political Behavior

Actions taken by individuals or groups within an organization that are aimed at using power and other resources to influence company policies or decisions.

Decision-Making Procedures

The processes or steps followed to make choices or solve problems, often within organizational or group settings.

Maneuverability

The ability to move or be moved easily and effectively, often used in contexts such as vehicles, business strategies, or decision-making processes.