Mathison Company Exchanged a Worn-Out Tractor That Had Cost $30,000

question 52

Short Answer

Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500 cash. The transaction lacked commercial substance.
Required:
Compute the amount at which Mathison should record the new tractor.

Comprehend the challenges and necessity of emotional self-control in sales.

Understand the role of a salesperson as a manager of sales territory and problem solver for customers.

Realize the significance of practice in developing selling skills beyond theoretical knowledge.

Identify the range of services provided by salespeople to customers, including handling merchandise returns.

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Definitions:

Preventive Mental Health

Measures taken to prevent mental health problems from developing, such as promoting well-being, resilience, and early intervention strategies.

Biomedical Therapy

A treatment approach that utilizes medications and/or medical procedures to treat psychological disorders.

Neurogenesis

The creation of new neurons within the brain.

Psychodynamic Therapy

A therapeutic approach focusing on unconscious processes and childhood experiences to understand and resolve psychological disorders.