Romney Company Exchanged One Business Automobile for a Replacement Automobile

question 61

Multiple Choice

Romney Company exchanged one business automobile for a replacement automobile. The old automobile had an original cost of $40,000, a book value of $16,000, and a fair value of $24,000 when exchanged. In addition, Romney paid $9,000 cash to acquire the replacement automobile. The list price of the replacement automobile was $45,000. The replacement will help generate significantly greater cash flows in the business. At what amount should the replacement automobile be recorded for financial accounting purposes?

• A) $24,000
• B) $30,000
• C) $33,000
• D) $35,000

Recognize the different types of tissues and their specialized functions within the human body.

Understand the distribution and function of cartilage in various parts of the body.

Comprehend the dietary implications of genetic disorders such as galactosemia.

Grasp the structural and functional organization of cells and their components.

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions to problems.

Escalating Commitments

The phenomenon where individuals or organizations continue to invest time, money, or resources into a failing course of action due to the amount already invested.

Setting Limits

Establishing and enforcing rules or boundaries that govern acceptable behavior and actions.

Involvement

The degree of interest and personal relevance a person finds in a particular situation or activity.