Below Is Information Relative to an Exchange of Similar Assets

question 50

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 B, Grand Forks would record a gain/(loss) of:

• A) $5,000.
• B) $3,000.
• C) ($5,000).
• D) ($3,000).

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Definitions:

Social Factors

Aspects of society and culture that influence individuals' behaviors, actions, and preferences.

Productivity Increase

A rise in the output of goods or services relative to the input of resources such as time or labor.

Performance Excellence

The achievement of outstanding performance in operations, customer satisfaction, and financial outcomes.

Peters and Waterman

Authors of "In Search of Excellence," a book that presents eight attributes that excellent companies have in common.