The Cost of a New Asset Acquired in an Exchange

question 171

Multiple Choice

The cost of a new asset acquired in an exchange that has commercial substance is the cash paid plus the

• A)book value of the old asset.
• B)fair value of the old asset.
• C)book value of the asset acquired.
• D)fair value of the new asset.

Understand the role of discouraged workers in the unemployment statistics.

Interpret the economic conditions that lead to recession and expansion phases.

Identify the measures taken during economic recessions to stabilize the economy.

Distinguish between deflation and disinflation.