Disposing of an asset (Learning Objective 5) 15–20 min.

Alvery Industries had a piece of equipment that cost $31,000 and had accumulated depreciation of $30,000.

Requirement 1. Record the disposition of the equipment assuming the following independent situations:

a. Alvery discarded the equipment receiving $0.

b. Alvery sold the equipment for $6,000 cash.

c. Alvery traded the equipment in on a new piece of equipment costing $35,000.

Alvery was granted a $5,500 trade-in allowance for the old equipment and paid the difference in cash.

d. Alvery traded the equipment in on a new piece of equipment costing $23,000.

Alvery was granted a $500 trade-in allowance for the old equipment and signed a note payable for the difference.

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