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

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Definitions:

Negative Handprints

Prehistoric cave art involving the application of pigment around a hand placed against a surface, leaving a silhouette or "negative" image of the hand.

Unifying Device

An element in art or literature that serves to bring together various components of the work, creating a cohesive and harmonious whole.

Cave Painting

Prehistoric art found on cave walls or ceilings, primarily depicting animals and human figures, representing some of the earliest forms of human expression.

Lascaux

A complex of caves in southwestern France famous for its Paleolithic cave paintings, showcasing a wealth of prehistoric artwork.