EC Has an Old Asset That Originally Cost $150,000; the Accumulated

question 134

Multiple Choice

EC has an old asset that originally cost $150,000; the accumulated amortization is $76,000. Its current market value is $81,000. This old asset is exchanged for another asset (new) that has a list price of $100,000. EC should record the following as the cost of the new asset received, assuming that the two assets are:

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

	Dissimilar	Similar
1	$100,000	$81,000
2	81,000	76,000
3	81,000	74,000
4	90,000	74,000

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Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company's size and competitiveness in the market.

Diversifying

The strategy of expanding or varying products, services, or markets to reduce risk and increase potential for growth.

Reduction-In-Force (RIF)

A company strategy involving the decrease of its workforce due to budget cuts, restructuring, or other economic reasons, often leading to layoffs.

Cost-Savings Practice

Actions or strategies implemented by an organization or individuals to reduce expenses and save money without compromising quality or performance.