Sonny Exchanges a Productive Use Machine (Adjusted Basis of $20,000)

question 115

Multiple Choice

Sonny exchanges a productive use machine (adjusted basis of $20,000) for a new machine worth $18,000.In addition, he receives cash of $6,000.What is the recognized gain or loss and the basis of the new machine?

• A)$0 and $18,000.
• B)$0 and $22,000.
• C)$4,000 and $18,000.
• D)$4,000 and $24,000.
• E)None of the above.

Recognize the importance of planning in improving organizational performance, including time management, coordination, and action orientation.

Understand the concept and importance of planning in organizations.

Identify different types of planning, including strategic, tactical, contingency, and participatory planning.

Describe the role and characteristics of management by objectives (MBO).

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Definitions:

Interest Rate

The percentage of a loan subject to interest fees for the borrower, often shown as an annual portion of the outstanding loan balance.

Bank Lending

The process by which banks offer loan products to customers, thereby generating profits from the interest charged.

Loanable Funds

The market where savers supply funds for loans to borrowers.

Borrowers

Individuals or entities that take funds from a lender with the intention of paying back the borrowed amount plus interest.