Below Is Information Relative to an Exchange of Similar Assets

question 70

Multiple Choice

Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance. $$\begin{array} { l l l c } & { \text { Old Equipment } } && \text { Cash } \\& \text { Book Value } & \text { Fair Value } & \text { Paid } \\\text { Case A } & \$ 50,000 & \$ 60,000 & \$ 15,000 \\\text { Case B }& \$ 40,000 & \$ 35,000 & \$ 8,000\end{array}$$
- In Case A, Grand Forks would record the new equipment at:

• A) $65,000.
• B) $75,000.
• C) $50,000.
• D) $60,000.

Understand the concept of supply and demand and how changes in these affect market prices.

Identify factors that shift supply and demand curves.

Distinguish between normal, inferior, complement, and substitute goods.

Analyze the impact of income changes on consumption patterns.

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Definitions:

Optimum Size

The most efficient, effective, or desirable size for a particular purpose or situation.

Close Relationships

Deeply connected personal associations with significant others, characterized by affection, trust, and mutual support.

Preliminary Treatment

Initial steps or procedures done to prepare for the main treatment, often involving assessment and planning.

Nonnegotiable Guidelines

Nonnegotiable guidelines are strict rules or principles that must be followed without exceptions.