Norman Exchanges a Machine He Uses in His Pool Construction

question 67

Multiple Choice

Norman exchanges a machine he uses in his pool construction business for a used machine worth $6,000 to use in the same business.He purchased the machine 3 years ago for $22,000 and has taken depreciation of $9,000 on the machine.In the exchange,Norman also receives $3,000 of cash.As a result of the exchange,
I.Norman's basis in the acquired machine is $10,000.
II.Norman recognizes a loss of $3,000 on the exchange.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Comprehend the impact of social media's character limitations on network communication.

Acknowledge the demands of media relations in a 24/7 social media environment.

Explain social media's influence on public relations practices and theory.

Appreciate the role of two-way communication in engaging audiences on social media platforms.

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Definitions:

EAT

Earnings After Tax, which refers to the net profit a company makes after deducting all its costs, including taxes.

Gross Margin

The difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage.

Working Capital

The variance between a firm's immediate assets and its short-term obligations.

Accumulated Depreciation

The total depreciation of an asset over its life up to a specific point in time, reflecting how much of its value has been used up.