The Bacon Company Acquired New Machinery with a Price of $15,200

question 46

Multiple Choice

The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Bacon Company should record

• A) the new machinery at $16,700
• B) the new machinery at $12,700
• C) a gain of $1,500
• D) a loss of $1,500

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Definitions:

IR Absorptions

The process by which molecules absorb specific frequencies of infrared light, causing transitions in their vibrational energy levels, useful for molecular identification.

Structure

Refers to the arrangement of atoms within a molecule, including their spatial orientation and any form of bonding or connectivity between them.

C≡C Stretch

A vibrational motion observed in IR spectroscopy, characteristic of the carbon-carbon triple bond stretching.

C≡N Stretch

A spectroscopic term referring to the absorption frequency characteristic of the triple bond between carbon and nitrogen atoms in nitriles, observable in infrared or Raman spectra.