A Fixed Asset with a Cost of $52,000 and Accumulated

question 38

Multiple Choice

A fixed asset with a cost of $52,000 and accumulated depreciation of $47,500 is traded for a similar asset priced at $60,000 fair market value in a transaction with commercial substance.Assuming a trade-in allowance of $5,000,at what cost will the new equipment be recorded in the books?

• A)$60,500
• B)$60,000
• C)$54,000
• D)$59,500

Learn the potential outcomes of improvements in education and general knowledge on economic growth and production possibilities.

Comprehend how household choices and preferences can influence economic decisions and patterns of consumption.

Recognize the role of specialization and trade in enhancing economic efficiency and production.

Analyze the role of resources (labor, land, and capital) in the production process and how their allocation affects economic outcomes.

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Definitions:

Phosphodiester Bonds

chemical bonds that link nucleotides together in DNA and RNA, forming the backbone of these molecules.

Sugar

A category of soluble, sweet-tasting carbohydrates found naturally in foods, used primarily for energy in living organisms.

Phosphate

A chemical compound containing the phosphate ion, involved in energy transfer and storage in biological systems.

Backbone

The spine or vertebral column; a series of connected bones or vertebrae that provide structural support and protection to the spinal cord in vertebrates.