Koch Traded Machine 1 for Machine 2 When the Fair

question 81

Multiple Choice

Koch traded Machine 1 for Machine 2 when the fair market value of both machines was $49,350. Koch originally purchased Machine 1 for $76,300, and Machine 1's adjusted basis was $40,650 at the time of the exchange. Machine 2's seller purchased it for $64,350 and Machine 2's adjusted basis was $55,650 at the time of the exchange. What is Koch's adjusted basis in machine 2 after the exchange?

• A)$40,650.
• B)$49,350.
• C)$55,650.
• D)$76,300.
• E)None of the choices are correct.

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Definitions:

Lean Manufacturing

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on value creation for the end customer.

Cost Effectiveness

An evaluation measure that compares the relative costs and outcomes (effects) of different courses of action to determine which offers the best return or results for the resources invested.

Caring Leadership

A leadership approach emphasizing empathy, support, and concern for the well-being of followers.

Concern For People

This term reflects the degree to which a management or leadership approach prioritizes the well-being, needs, and interests of its employees or members.