Metro Auto Parts Recently Traded in Store Fixtures

question 74

True/False

Metro Auto Parts recently traded in store fixtures.The exchange had commercial substance.The old fixtures had a cost of $48,000 and accumulated depreciation of $16,000.Metro paid $106,000 for the new store fixtures.These new fixtures had a market value of $119,000.There is a loss of $19,000 on this exchange.

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Definitions:

Reshoring

What occurs when firms move jobs back home from foreign locations.

Outsourcing

The practice of hiring external vendors or companies to perform services or create goods that were traditionally done internally.

Competitive Implications

The potential impacts or consequences that actions of one business can have on its competitors in the market.

Trade Restrictions And Quotas

Measures implemented by governments to control the amount and type of goods that can be imported or exported, affecting international trade.