Gigantic Corp Acquired a Machine from Miko Company in Exchange

question 41

Multiple Choice

Gigantic Corp acquired a machine from Miko Company in exchange for 10,000 Gigantic common shares, for which the quoted market price on the stock exchange was $20 per share. The machine was estimated by Gigantic to have a fair market value of $225,000. (Assume that the market price of the shares and the fair value of the machine are equally reliable.) The book value of the machine in Miko's records was $190,000. At what amount should Gigantic record the machine?

• A)$190,000
• B)$200,000
• C)$212,500
• D)$225,000

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Definitions:

Nightmare Disorders

A sleep disorder characterized by frequent and vivid nightmares, often resulting in distress or impairment in social or occupational functioning.

REM Sleep

Rapid Eye Movement sleep; a unique phase of sleep characterized by rapid movement of the eyes, dreaming, and increased brain activity.

Shift Work Type

A work schedule that consists of hours different from the traditional 9 am to 5 pm, often involving evening or night shifts, early morning shifts, and rotating shifts.

Circadian Rhythm Disorder

A disruption in the natural circadian rhythm, the internal clock that regulates sleep-wake cycles, leading to sleep disturbances and other health issues.