On January 1,2013,Canal Locks Corporation Purchased Drilling Equipment for $11,500

question 31

Multiple Choice

On January 1,2013,Canal Locks Corporation purchased drilling equipment for $11,500.The equipment has an estimated useful life of four years and a salvage value of $200.Given this information,if Canal uses the sum-of-the-years'-digits method of depreciation and then trades the equipment for new equipment with a fair market value of $16,000 on December 31,2014,and pays $8,000 cash in the exchange,assuming the exchange has commercial substance,the new equipment should be recorded at

• A) $16,000.
• B) $12,475.
• C) $11,590.
• D) $8,110.

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Old Age

A period in the human lifespan characterized by advanced age, typically involving retirement from work and noticeable changes in health and physical functioning.

Sensitivity To High-Frequency Sounds

The ability or capacity of the auditory system to detect sounds at higher pitches, which can vary among individuals.

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Alterations in the physical state or properties of a substance or organism, usually observable.

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