During 2014, Garnet Corporation Purchased Three Pieces of Equipment at an Auction

question 40

Multiple Choice

During 2014, Garnet Corporation purchased three pieces of equipment at an auction for the lump sum of $200,000. It cost Garnet $40,000 to have the equipment delivered and installed. The equipment was appraised at the following fair values:
Machine 1 $\quad$ $120,000
Machine 2 $\quad$ 105,000
Machine 3 $\quad$ 75,000
Machine 2 should be recorded on Garnet's books at

• A) $120,000
• B) $105,000
• C) $84,000
• D) $70,000

---

Definitions:

Dietary Tracking App

A mobile application designed to monitor and record food intake and nutritional information.

Smartphone

A mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, internet access, and an operating system capable of running downloadable apps.

Mass Media Material

Content created for distribution on large-scale platforms aimed at reaching a wide audience, including news, advertising, and entertainment.

Behavior Change

The process of transforming or modifying actions, habits, or conduct in order to achieve specific goals.