Roy Exchanges a Productive Use Machine (Adjusted Basis of $9,000)for

question 156

Multiple Choice

Roy exchanges a productive use machine (adjusted basis of $9,000) for a new machine worth $6,000.In addition,he receives cash of $5,000.What is the recognized gain or loss and the basis of the new machine?

• A)$0 and $9,000.
• B)$0 and $4,000.
• C)$2,000 and $6,000.
• D)$2,000 and $9,000.
• E)None of the above.

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Definitions:

Strategic Business Unit Level

A division or unit within a larger organization that operates with its own mission, vision, and objectives, and focuses on specific market segments.

Strategic Direction

The guidance provided by an organization to define its strategy and make decisions about allocating its resources to pursue this strategy.

Value-Creating Opportunities

Situations or activities that enhance the benefit or advantage of a product or service for customers.

Strategic Business Unit

A semi-autonomous division or unit within a larger company that focuses on a specific market segment or product line, possessing its own strategy and objectives.