Use the Following Data for Questions 10 Through 17

question 21

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.
-Given the assumptions in 15 above, at what amount will Brown record Machine A?

• A) $540,000.
• B) $737,100.
• C) $621,000.
• D) $656,100.

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Definitions:

Memory Scanning

The mental process of searching through stored information in memory to find a specific piece of data.

Reaction Times

The duration of time it takes from the presentation of a stimulus to the onset of a motor response.

Ability

The possession of the means or skill to do something.

Associational Fluency

The ease with which one can produce a variety of ideas or responses, often tested as a cognitive function or creativity measure.