A Machine That Was Purchased for $100,000 Has an Accumulated

question 48

Multiple Choice

A machine that was purchased for $100,000 has an accumulated depreciation of $70,000 as of the current date. The company exchanges the machine for a new machine. The new machine has a market value of $120,000 and company pays cash of $100,000. Assume the exchange has commercial substance. What is the result of this exchange?

• A)gain of $10,000
• B)gain of $5,000
• C)loss of $10,000
• D)loss of $30,000

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Definitions:

Organizing Campaign

Efforts aimed at rallying employees, typically for unionization or collective bargaining purposes.

Arbitration

A form of alternative dispute resolution where a neutral third-party makes decisions to resolve conflicts between parties, often used in labor disputes.

National Labor Relations Board

An independent federal agency in the United States created to enforce labor laws and ensure fair labor practices.

Unfair Labor Practices

Actions by employers or unions that violate the rights of employees or the collective bargaining process as defined by labor laws.