Mathew Corp Exchanged Similar Assets with Simone Company in a Transaction

question 58

Multiple Choice

Mathew Corp exchanged similar assets with Simone Company in a transaction with commercial substance. Mathew gave up equipment that had a net book value of $47,000 (fair value $49,000) and Simone exchanged equipment with a net book value of $36,000 (fair value $35,000) . What is the correct value at which Mathew should record the new equipment?

• A)$35,000
• B)$36,000
• C)$47,000
• D)$49,000

Avoid common pitfalls such as chartjunk in designing visual elements.

Create effective business visuals that complement textual information for clearer communication.

Evaluate the aesthetic and symbolic aspects of graphic design in business visuals.

Appreciate the importance of visuals in conveying complex information clearly and effectively.

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Definitions:

Revenue Recognition Principle

The Revenue Recognition Principle is an accounting guideline that determines the specific conditions under which revenue is recognized or accounted for.

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred, matching expenses with related revenues.

Relevant Accounting Information

Financial data and insights that are pertinent and useful for decision-making processes.

Predictive Value

The capability of financial information to help users in predicting future trends and outcomes.