Rene Exchanged Similar Assets with Simone Company in a Transaction

question 29

Multiple Choice

Rene exchanged similar assets with Simone Company in a transaction with commercial substance. Rene 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 Simone should record the new equipment?

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

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Definitions:

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception and inappropriate actions.

Cultural Heritage

Refers to the legacy of physical artifacts and intangible attributes of a group or society that are inherited from past generations, preserved, and valued for the future.

Electroconvulsive Therapy (ECT)

A psychiatric treatment involving electric currents passed through the brain to trigger seizures, aiming to relieve severe mental health conditions.

Structural Damage

Physical harm or degradation to the integrity of a building or structure due to factors like natural disasters, wear and tear, or accidents.