Use the Following Data for Questions 10 Through 17

question 25

Short Answer

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.
-Return to the original problem. Assume that Sawyer is a dealer selling new machines and that Brown is a manufacturer. Assume that the exchange has commercial substance. For this transaction, at what amount will Sawyer record the truck?
a. $540,000.
b. $737,100.
c. $621,000.
d. $656,100.

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Definitions:

Subject Class

A classification system that organizes subjects or courses of study within an educational institution.

Predicate Class

A predicate class in logic and mathematics is a category defined by a certain property that holds for its members; it's essentially a set of objects that satisfy a specific predicate.

Universal

Pertaining to or involving all members of a class or category without exception, often used in the context of universal principles or statement in logic.

Categorical Proposition

A statement relating two categories or classes in a specific way, typically structured as assertions about all, some, or no members of these categories.