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

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Definitions:

Graphics

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Segmented Bar Chart

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Stacked Bar Chart

A graphical representation of data where different bars are placed on top of each other to show the total of various categories.

Cost of Living

The amount of money needed to sustain a certain standard of living, including basic expenses such as housing, food, taxes, and healthcare.