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

question 113

Multiple Choice

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is

• A) $3,000
• B) $4,500
• C) $500
• D) $1,500

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Definitions:

Complex Purchase

Purchasing decisions that involve extensive research and consideration due to factors like high cost, long-term commitments, or personal importance.

Sales Promotion

A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.

Personal Selling

The two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer’s purchase decision.

Summary Close

A sales technique where the main points of the presentation are summarized to reinforce the value of the offer and encourage a decision.