[9] UVW, Inc. had an old piece of equipment that had cost $500,000. The CFO wanted to trade-in the
old piece of equipment for a new piece of the same equipment. At the time of the trade-in, the
controller had recorded accumulated depreciation of $400,000. The fair market value of the old piece
of equipment at the date of the trade-in was $150,000. In order to acquire the new piece of equipment
the controller had to also cut a check to the vendor of the new equipment in the amount of $430,000.
What is the entry the controller made to the books. MAKE SURE YOU DESIGNATE EACH PIECE
OF EQUIPMENT AS OLD OR NEW, OR YOU WILL LOSE POINTS.