In January 2014,Shone Company Exchanged an Old Machine,with a Book

question 62

Multiple Choice

In January 2014,Shone Company exchanged an old machine,with a book value of $156,000 and a fair value of $140,000,and paid $40,000 cash for a similar used machine having a list price of $200,000.The exchange had commercial substance.At what amount should the machine acquired in the exchange be recorded on Shone's books?

• A) $200,000
• B) $196,000
• C) $184,000
• D) $180,000

---

Definitions:

Personal Change

The process through which an individual alters his/her behaviors, beliefs, or life patterns, often for personal development or overcoming challenges.

Coping With Change

The process of effectively managing and adapting to alterations in one’s life or environment.

Lewin Change Model

A model describing organizational change in three stages: unfreezing, changing, and refreezing.

Steps Involved

The individual stages or actions that comprise a process or procedure.