Our Company trades in old equipment that cost $81,000, has a book value of $53,000 and a fair value of $45,000. The new equipment has a list price of $94,000. We receive a trade in allowance for the old equipment of $50,000. This transaction has commercial substance. Prepare the journal entry to record this exchange.

Our Company trades in old equipment that cost $81,000, has a book value of $53,000 and a fair value of $45,000. The new equipment has a list price of $94,000. We receive a trade in allowance for the old equipment of $50,000. This transaction has commercial substance. Prepare the journal entry to record this exchange.

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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bartleby, a Learneo, Inc. business

1.	Our Company trades in old equipment that cost $81,000, has a book value of $53,000 and a fair value of $45,000.
	The new equipment has a list price of $94,000.
	We receive a trade in allowance for the old equipment of $50,000.
	This transaction has commercial substance.

	Prepare the journal entry to record this exchange.

	Answer:
		Debits	Credits