A Fixed Asset with a Cost of $41,000 and Accumulated

question 165

Multiple Choice

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,000, at what cost will the new equipment be recorded in the books?

• A) $54,000
• B) $45,000
• C) $51,000
• D) $50,000

---

Definitions:

Factor Analysis

A statistical method for studying the interrelations among various tests. The goal is to discover whether the tests are all influenced by the same factors, or by distinct factors.

Self-monitoring Scale

is a psychological measure that assesses the degree to which individuals regulate their behavior to adapt to social situations and expectations.

Person-by-Situation

An interactional perspective suggesting that human behavior results from a combination of individual characteristics and situational factors.

Trait Theories

A group of theories suggesting that personality is composed of stable characteristics (traits) that influence behavior.