EC Exchanged an Old Widget-Making Machine (Model A) That Originally

question 169

Multiple Choice

EC exchanged an old widget-making machine (Model A) that originally cost $46,000 (accumulated amortization, $37,400) plus $10,000 cash for an improved widget-making machine (model B) owned by IC. IC originally acquired the Model B machine for $77,000 (accumulated amortization to date, $42,000) . EC's machine has a current market value of $5,000 and IC's has a current market value of $20,000. These are similar assets. EC should record the cost of the Model B widget-making machine acquired at:

• A) $15,000.
• B) $17,600.
• C) $18,600.
• D) $20,000.

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Definitions:

Workflow

The sequence of processes through which a piece of work passes from initiation to completion.

Task Flow

Task flow refers to the sequential order and process through which tasks are organized and executed within a system or workflow, aiming to optimize efficiency and productivity.

Re-Engineering

The process of redesigning systems or processes of an organization from the ground up for the purpose of improving efficiency, effectiveness, and adaptability.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion in a business or operational environment.