A Company Decides to Exchange Its Old Machine and $231000

question 66

Multiple Choice

A company decides to exchange its old machine and $231000 cash for a new machine. The old machine has a book value of $189000 and a fair value of $210000 on the date of the exchange. The cost of the new machine would be recorded at

• A) $420000.
• B) $441000.
• C) $399000.
• D) cannot be determined.

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Definitions:

Business Strategy

A plan or set of decisions that guide a company in achieving specific business objectives and gaining a competitive edge.

Functional Strategy

Functional Strategy involves detailed planning and management of tasks within specific departments or functions of an organization to achieve the broader strategic objectives.

Corporate Strategy

A long-term plan of action designed to achieve a particular goal or set of goals within a corporate entity.

Business Strategy

A plan of action designed to achieve a long-term or overall aim and secure a competitive position in the market.