On the first day of the fiscal year, a new walk-in cooler with a list price of $47,300 was acquired in exchange for an old cooler and $41,400 cash. The old cooler had a cost of $41,000 and accumulated depreciation of $39,000. Assume the transaction has commercial substance. a. Determine the gain to be recorded on the exchange. b. Journalize the entry for the exchange. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a new walk-in cooler with a list price of $47,300 was acquired in exchange for an old cooler and $41,400 cash. The old cooler had a cost of $41,000 and accumulated depreciation of $39,000. Assume the transaction has commercial substance. a. Determine the gain to be recorded on the exchange. b. Journalize the entry for the exchange. If an amount box does not require an entry, leave it blank.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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