On January 2, 2016, Bering Co. disposes of a machine costing $44,000 with accumulated depreciation of $24,625.
Question:
1. The machine is sold for $18,250 cash.
2. The machine is traded in for a newer machine having a $60,200 cash price. A $25,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange lacks commercial substance.
3. The machine is traded in for a newer machine having a $60,200 cash price. A $15,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance?
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Note Book value of Machine equals 44000 24625 19375 1 Sold for 18250 cash Jan 2 Cash 1...View the full answer
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Related Book For 
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
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