An Oklahoma City Business Paid $15,000 Cash for Equipment Used

question 107

Multiple Choice

An Oklahoma City business paid $15,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $20,000. When the balance sheet was prepared, the value of the equipment was $22,000. What is the relevant measure of the value of the equipment?

• A)Historical cost, $15,000
• B)Fair market cost, $20,000
• C)Current market cost, $22,000
• D)$15,000 on the day of purchase, $22,000 on balance sheet date

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Definitions:

Codominance

A genetic scenario where both alleles for a trait are fully expressed in the phenotype of the heterozygotes, showing both characteristics independently.

Phenotypic Effects

Observable traits or characteristics of an organism resulting from the interaction of its genotype with the environment.

Heterozygous

Having two different alleles for a single trait.

Technical Terminology

Specialized or industry-specific vocabulary used by professionals to communicate precisely in their field of expertise.