In an Exchange of Plant Assets That Has Commercial Substance

question 69

Multiple Choice

In an exchange of plant assets that has commercial substance any difference between the fair value and the book value of the old plant asset is

• A) recorded as a gain or loss.
• B) recorded if a gain but is deferred if a loss.
• C) recorded if a loss but is deferred if a gain.
• D) deferred if either a gain or loss.

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Definitions:

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

HRP Model

Human Resource Planning Model; a strategic process used by organizations to align their human resource needs with their business goals.

Internal Fit

Refers to the alignment between an organization's human resources strategies, policies, and practices with its overall business strategy to create cohesiveness and enhance performance.

HR Practices

Activities and policies implemented by the human resources department to manage and support an organization's workforce, including hiring, training, performance management, and benefits administration.