Libya Corp

question 20

Multiple Choice

Libya Corp.exchanged similar pieces of equipment with Burundi Corp.No cash was exchanged.Since this exchange will not significantly change the economic position of either company, this transaction lacks commercial substance.At this time, the net book value of Libya's asset is $40,000, while the net book value of Burundi's asset on their books is $37,000.However, it has been reliably determined that the fair value of Libya's asset is $41,000, while the fair value of Burundi's asset is $38,000.Given these facts, at what amount should Libya record the asset it receives from Burundi?

• A)$41,000
• B)$40,000
• C)$38,000
• D)$37,000

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Definitions:

Multichannel Marketing

A marketing strategy that uses several different channels, such as retail stores, online platforms, and direct mail, to reach customers.

Showrooming

The behavior of checking out products in a physical retail store without buying them, and later searching online to buy the same products at a cheaper price.

Strategic Channel Alliance

A partnership between two or more organizations to use each other's distribution channels to sell their products, often to expand market reach.

Global Marketing

Marketing strategies and efforts designed to promote and sell products or services on an international scale, taking into account cultural, legal, and language differences.