Hyde Company Traded in an Old Machine with a Book

question 67

Multiple Choice

Hyde Company traded in an old machine with a book value of $15,000 on a new machine.The exchange did not have commercial substance.The new machine,which had a cash price of $75,000,was purchased for $64,000 cash plus the old machine.Hyde should record the cost of the new machine as

• A) $64,000.
• B) $71,000.
• C) $75,000.
• D) $79,000.

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Definitions:

Kinesthesis

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Sensory Information

Data received by the senses which then can be processed by the brain to inform about the environment.

Joints

Joints are the locations where two or more bones meet, allowing for movement and flexibility.

Organ of Corti

A structure located on the basilar membrane in the cochlea of the inner ear, responsible for detecting sound vibrations.