Use the Following Data for Questions 10 Through 17

question 15

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.
-Property, plant, and equipment is usually presented in the balance sheet at

• A) replacement cost less accumulated depreciation.
• B) historical cost less salvage value.
• C) original cost less accumulated depreciation.
• D) acquisition cost less net book value thereof.

---

Definitions:

Geofencing

A location-based technology that creates a virtual boundary around a geographical area, triggering an action when a device enters or leaves that area.

Strip Mall

A type of shopping mall or plaza that is typically open-air and has a row of retail stores, services, or restaurants, usually accessible from a large parking area.

Coupons

Promotional tools used to offer discounts or rebates on products or services, aimed at increasing sales and customer loyalty.

Marketing Concept

A business philosophy suggesting that company success is achieved by identifying and satisfying the needs and wants of customers.