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:

Empowering Leadership

A leadership style that seeks to give employees more autonomy, responsibility, and freedom to make decisions and contribute to the organization's goals.

Substitutes For Leadership

The concept that certain characteristics of the organization, task, or subordinates themselves can diminish or replace the influence of leadership.

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A leader who guides and influences others based on core personal values and principles, often inspiring similar values in their followers.

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