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:

Brand Mark

A unique design, symbol, or logo that identifies a brand and differentiates it from its competitors.

Shell Gas Stations

A global chain of service stations that sell gasoline, diesel, and other types of fuel, operated by the multinational oil and gas company Shell.

Brand Equity

The value a brand adds to a product or service, reflected in how customers think, feel, and act towards the brand.

Brand Image

The perception of a company or product held by real or potential customers, formed through marketing efforts, reputation, and customer experiences.