A machine that cost $9,050 with $3,940 of accumulated depreciation was traded in for a similar machine

Question:

A machine that cost $9,050 with $3,940 of accumulated depreciation was traded in for a similar machine having a $5,870 cash price. An $820 tradein was offered by the seller.

a. Calculate the book value of the old machine.

b. Calculate the loss on the exchange.

c. Prepare the journal entry for the exchange.

d. Calculate the cost basis of the new equipment if the income tax method is used and prepare a journal entry.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

College Accounting A Practical Approach Chapters 1-25

ISBN: 9780133791006

13th Edition

Authors: Jeffrey Slater

See More Books

Question Posted: Apr 14, 2017 12:41 PM

See More Questions

Consider each of the following independent situations: a. GYT Company exchanges a machine that cost $ 4,000 and has accumulated depreciation of $ 2,560 for a similar machine. GYT also receives $ 25...
A machine that cost $ 400,000 has an estimated residual value of $ 40,000 and an estimated useful life of four years. The company uses straight- line depreciation. Calculate its book value at the end...
A machine that cost $ 400,000 has an estimated residual value of $ 40,000 and an estimated useful life of 20,000 machine hours. The company uses units- of- production depreciation and ran the machine...
What is the type of the expressions computed on these two lines? 4 > 5 print (4>5)
1. In Example 13-9, the fluid is accelerated to a greater speed as it enters the narrow part of the pipe. Identify the forces that act on the fluid to produce this acceleration? 2. You are sitting in...
Readings https://www.economicsdiscussion.net/microeconomics/keynesian-macroeconomic-system-is-and-lm-curve-with-diagram/6329...
E 16-9 Recording new partner investmentRevaluation cases The capital balances and profits- and loss-sharing percentages for the Sip, Jog, and Run partnership at December 31, 2016, are as follows: Sip...
How do they relate to the difference between tax expense and taxes payable? How could an organization have a tax receivable? Why is the tax expense reported on the income statement comprised of...
Pat Maninen earns a gross salary of $2,700 each week. Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare. a. What are Pat's first week's deductions for Social Security and...
Suppose a person has a utility function given by U = [x + y]1/ where is a number between - and 1. This is called a constant elasticity of substitution (CES) utility function. You will encounter CES...
Lincoln Co., whose accounting period ends on December 31, purchased a machine for $6,800 on January 1 with an estimated residual value of $840 and an estimated useful life of 4 years. Prepare...
On May 1, 2014, Apricot Company bought a patent at a cost of $5,100. It is estimated that the patent will give Apricot a competitive advantage for 5 years. Record in general journal form amortization...
Spector (S), Rosenberg (R), Patron (P), and Konover (K) agree to build a shopping plaza in Seymour, Connecticut. There is no written partnership agreement. The four orally form Tri Town Realty Co., a...
7. This is a question about electromagnetic waves. (a) Starting from Maxwell's equations in a vacuum show that the electric field E and magnetic field B obey wave equations and identify the velocity...
Participate in workplace health and safety Third- party report Task 1: Case scenario: Workplace hazard collection and risk control form You are required to review this workplace inspection form and...
The red curve is the position-time x-t graph for the ladybug. Each tick mark on the time axis of the graph marks off 0.5 s. Note: you can hit reset graph and graph again to watch the graph form again...
Oma's Bakery is thinking about replacing the convection oven with a new, more energy-efficient model. Information related to the old and new ovens follows: (Click the icon to view the information...
One could argue that substantial travel for work is an undesirable characteristic of any job. What would the theory of compensating differentials predict about the relative wages of a sales position...
After reading the following story you are required to: 1. Read the 15 statements about the story and check each to indicate whether you consider it to be true, false or? T means that the statement is...
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
Refer to the payroll register you completed in 8C-3. Prepare the journal entry necessary to record the payroll for the third week of February.
The payroll clerk for the Marlin Company of Armstrong assembled the following data for the companys five employees before suddenly becoming quite ill. You have been approached to complete the payroll...
Comet Engineering of Delta is a consulting firm that employs four professional staff, two casual clerks, and you as office manager (accountant). Everyone except the clerks is paid a weekly salary....
Maddox Resources has credit sales of $ 1 8 0 , 0 0 0 yearly with credit terms of net 3 0 days, which is also the average collection period. Maddox does not offer a discount for early payment, so its...
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Jan. 5 Selk purchased 50,000 shares (25% of total)...
Equipment with a book value of $84,000 and an original cost of $166,000 was sold at a loss of $36,000. Paid $100,000 cash for a new truck. Sold land costing $330,000 for $415,000 cash, yielding a...

A machine that cost $9,050 with $3,940 of accumulated depreciation was traded in for a similar machine

Question:

Step by Step Answer:

a b c d Machine...View the full answer

College Accounting A Practical Approach Chapters 1-25

Students also viewed these Cost Accounting questions