Question: A company purchased equipment valued at $238,000. It traded in old equipment for a $180,000 trade-in allowance and the company paid $58,000 cash with the trade-in. The old equipment cost $210,000 and had accumulated depreciation of $42,000. This transaction has commercial substance. What is the recorded value of the new equipment?
Question: A company purchased equipment valued at $238,000. It traded in old equipment for a $180,000 trade-in allowance and the company paid $58,000 cash with the trade-in. The old equipment cost $210,000 and had accumulated depreciation of $42,000. This transaction has commercial substance. What is the recorded value of the new equipment?
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 3RE: Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not...
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Transcribed Image Text:Question: A company purchased equipment valued at $238,000. It traded in old
equipment for a $180,000 trade-in allowance and the company paid $58,000 cash
with the trade-in. The old equipment cost $210,000 and had accumulated
depreciation of $42,000. This transaction has commercial substance. What is the
recorded value of the new equipment?
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