Question
22 & Good luck! 2.5 pts The Ameale Company purchased a 3D printer on Jan 2, 2015 at $894,000. The company uses straight line depreciation
22 & Good luck! 2.5 pts The Ameale Company purchased a 3D printer on Jan 2, 2015 at $894,000. The company uses straight line depreciation method for all of its long-term depreciable assets. At the time of the purchase, Ameale estimated that the residual value of the laser equipment after 6 years of service life will be $30,000. On June 1, 2019, Ameale traded its 3D printer for the newer 4D printer manufactured by American Printer Association. Ameale also paid American Printer Association $468,000 in cash as part of the exchange. Assuming the fair value of the 3D printer is $180,000 in 2019, which of the following correctly describes the above exchange? Fair value of the new equipment: $744,000; Gain: 66,000 Fair value of the new equipment: $648,000; Loss: (66,000) Fair value of the new equipment: $744,000; Loss: (78,000) Fair value of the new equipment: $648,000; Loss: (78,000) Previous Nex
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started