Use the Following Data for Questions 10 Through 17

question 85

Multiple Choice

Use the following data for questions 10 through 17. Each question is independent of the other questions.
Sawyer Corporation has a machine (Machine A) that it acquired on 1/1/14 for $540,000. On 12/31/14 such machines have a selling price and fair value of $621,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method.
Brown Corporation has a machine (Machine B) that it acquired on 1/1/14 for $729,000. On 12/31/14 such machines have a selling price and fair value of $540,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method.
On 12/31/14 Brown gave Machine B plus $81,000 cash to Sawyer in return for
Machine A.
-Assume that both Sawyer and Brown are new machine dealers and that the machines are still new. Also assume that the exchange lacks commercial substance. At what amount will Machine A be recorded on Brown's books?

• A) $729,000.
• B) $621,000.
• C) $810,000.
• D) $540,000.

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Definitions:

Body Perception

How individuals perceive and experience their own body, including its appearance and physical capabilities, which can significantly influence self-esteem and behavior.

Reticular Formation

This is a region in the brainstem that plays a critical role in controlling arousal and consciousness.

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A lack of movement or exercise, often leading to reduced physical fitness and health.

Primary Motor Cortex

The region of the cerebral cortex involved in the planning, control, and execution of voluntary movements, located in the frontal lobe of the brain.