A Fixed Asset with a Cost of $41,000 and Accumulated

question 41

Multiple Choice

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 fair market value in a transaction with commercial substance.Assuming a trade-in allowance of $4,000,at what cost will the new equipment be recorded in the books?

• A)$50,000
• B)$45,000
• C)$51,000
• D)$54,000

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Definitions:

Swings

Playground equipment consisting of a seat suspended by ropes or chains, used for moving back and forth.

Negative Reinforcement

A behavioral psychology concept where the removal of an unfavorable outcome or stimulus strengthens a behavior.

Nagging

Persistent and repetitive asking or demanding, often perceived as annoying or bothersome.

Positive Punishment

A concept in behaviorism where an undesirable behavior is followed by an unfavorable outcome or stimulus, with the intention of decreasing that behavior.