DC Bought Assets A, B, and C for a Total

question 175

Multiple Choice

DC bought Assets A, B, and C for a total cash price of $324,000. The assets were reflected in the accounts of the seller as follows: A, $75,000, B, $60,000, and C, $65,000. The property tax assessments were: A, $15,000, B, $4,000, and C, $6,000. Because the tax assessments were made by untrained people, they bear little resemblance to actual market prices. An independent and competent appraisal showed the following: A, $105,000, B, $70,000, and C, $95,000. DC should record the costs of the assets as follows: $$\begin{array} { | l | l | l | } \hline \text { Asset A } & \text { Asset B } & \text { Asset C } \\\hline 1 \$ 108,000 & \$ 108,000 & \$ 108,000 \\\hline 2126,000 & 84,000 & 114,000 \\\hline 3105,000 & 70,000 & 95,000 \\\hline 475,000 & 60,000 & 65,000 \\\hline\end{array}$$

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

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Definitions:

Action Potential

A brief electrical charge that travels down a neuron, initiating neurotransmission and facilitating neural communication.

All Or None

A principle that states a neuron either fires with full strength or not at all, depending on whether the stimulus reaches a certain threshold.

Principle

A basic principle or assertion that acts as the cornerstone for a belief system or behavioral guide or supports a sequence of logical thinking.

Fires

Rapid oxidation processes that result in the emission of heat and light in varying intensities; often considered a hazard when uncontrolled.