Equipment Was Acquired for $256,000 and Has Accumulated Depreciation of $187,000.The

question 166

Multiple Choice

Equipment was acquired for $256,000 and has accumulated depreciation of $187,000.The business exchanges this equipment for new equipment.The new equipment has a market value of $208,000 and the business pays $159,000 cash.Assume the exchange has commercial substance.The exchange results in ________.

• A)loss $20,000
• B)gain $20,000
• C)gain $139,000
• D)loss $139,000

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Definitions:

Catalyst

A substance that increases the rate of a chemical reaction without being consumed or altered in the process.

Disability Insurance

A type of insurance that provides income in the event that a worker is unable to perform their work and earn money due to a disability.

Disabling Condition

A physical or mental condition that significantly restricts one or more major life activities.

Salary Percentage

A portion or fraction of an employee's salary, often used in contexts such as salary increases or deductions, expressed as a percentage.