A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000. Assuming a trade-in allowance of $4,000, the cost basis of the new asset is
A) $54,000
B) $45,000
C) $51,000
D) $50,000
D
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Foundations, Inc. produces and sells cosmetic products. Currently, the company is operating at 70% of its capacity. The sales price of its product is $30 per unit, and it incurs a full cost of $25 to produce each unit. Its yearly fixed manufacturing overhead amounts to $20,000. The company has received a one-time order for supplying 5,000 units at $26 per unit. This order can be executed within the excess production capacity and will not involve any additional fixed costs. To make this decision, the management of Foundations should use ________.
A) absorption costing as the decision is long-term in nature B) variable costing as the decision is short-term in nature C) absorption costing as the decision is short-term in nature D) variable costing as the decision is long-term in nature
The last step in the accounting record-keeping process is preparing the balance sheet from amounts in the balance sheet accounts
Indicate whether the statement is true or false
Satisfaction of publics as a retail objective is involved with which of the following?
a. stockholders only b. consumers only c. stockholders and consumers d. stockholders, consumers, suppliers, employees, and government
The fiber optics copying process involves the use of plain paper
Indicate whether the statement is true or false.