When an asset is traded in for a new asset, the new asset is recorded at what value? a. Fair value of new asset b. Cash paid plus fair value of old asset C. Fair value of old asset d. Cash paid plus book value of old asset Lifo Inc. is being sued by one of its customers. The likelihood of losing is likely, however the amount of the loss is unknown. What is the correct accounting treatment? a. A brief description of the lawsuit is disclosed in the notes b. Increase Retained earnings for $1,000,000 C. Record a liability of $1.000.000 d. Record an asset for $1.000.000 Nettie Inc. signed a 4 year note for $40,000 on August 1, 2015. $10,000 is due each year with the first payment made on August 1, 2016. How will this be shown on the balance sheet on December 31, 2015? a $30,000 will be recorded as a long-term liability b. $40.000 will be recorded as a current liability c$40,000 will be recorded as a long-term liability d. $10,000 will be recorded as a long-term liability Productive output is not measured in a. Hours used b. Units of Output C. Years d. Kilometers driven A loan is similar to a bond for the following reason a. It is secured b. A premium or discount is recorded C Interest rates are low d. The principal is paid when it matures NI Jump to . M