Ronald Exchanged Similar Assets with Silver Company in a Transaction

question 79

Multiple Choice

Ronald exchanged similar assets with Silver Company in a transaction without commercial substance. Ronald gave up equipment that had a net book value of $47,000 (fair value $49,000) and Silver exchanged equipment with a net book value of $36,000 (fair value $35,000) . What is the correct value at which Ronald should record the new equipment?

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

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Definitions:

Want

A desire for something that may or may not be necessary for basic survival but is sought after for satisfaction or pleasure.

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The instinct or ability to make effective decisions in marketing strategies, understanding customer needs, market trends, and how to appeal to target audiences.

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A business philosophy suggesting that company success lies in understanding and meeting the needs of its consumers.

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Stands for Product, Price, Place, and Promotion, which are considered the core elements of the marketing mix used to market a product or service effectively.