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

question 61

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. Assuming a trade-in allowance of $4,000, the cost basis of the new asset is

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

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Definitions:

Capacity

The legal ability of a person to enter into a contract, often determined by factors such as age, mental competency, and legal status.

Individual Differences

Variations among individuals in their behaviors, abilities, experiences, and interests, often considered within the study of psychology to understand human complexity.

Personality Psychologists

Specialists in psychology who study the variation in individuals’ characteristics, traits, and behaviors.

Behavior Patterns

Repetitive actions or reactions that are exhibited by individuals across different situations, often forming an identifiable part of their character or psychological profile.