An Entity Acquired an Item of Plant in Exchange for an Item

question 24

Multiple Choice

An entity acquired an item of plant in exchange for an item of equipment. The equipment has a carrying value of $5000 and a fair value of $6000. The journal entry to record the acquisition of the plant will show:

• A) a loss on acquisition of $1000.
• B) proceeds on sale of equipment of $1000.
• C) a gain on sale of $1000.
• D) proceeds on sale of plant of $1000.

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Definitions:

Moral

Relating to principles of right and wrong in behavior, especially within the context of ethics or values.

ALS

Amyotrophic Lateral Sclerosis, a progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord, leading to muscle weakness and, eventually, loss of motor control.

Tuesdays

The day of the week following Monday and preceding Wednesday, without specific universal significance in culture, religion, or sociology.

Fridays

The day of the week between Thursday and Saturday, often associated with the start of the weekend in many cultures.