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

question 32

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

---

Definitions:

Knowledge Sharing

The activity of exchanging information, insights, and experiences among individuals or organizations.

Boundary Activities

Actions taken to manage and negotiate the limits and interfaces between different roles, groups, or organizations, often to facilitate cooperation or protect autonomy.

Team Innovation

The process by which novel ideas, products, or solutions are generated through collaborative efforts within a team.

Organizational Effectiveness

Refers to how efficiently and effectively an organization meets its goals and satisfies its stakeholders.