A company purchased equipment valued at $259,000. It traded in old equipment for a $143,000 trade-in allowance and the company paid $116,000 cash with the trade-in. The old equipment cost $230,000 and had accumulated depreciation of $92,000. This transaction has commercial substance. What is the recorded value of the new equipment?

Mohr Company purchases a machine at the beginning of the year at a cost of $30,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 52,000 units. The machine is estimated to have a $4,000 salvage value. The company produces 9,300 units in year 1 and 6,300 units in year 2. Depreciation expense in year 2 is:

Martin Company purchases a machine at the beginning of the year at a cost of $63,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $5,000 salvage value. Depreciation expense in year 4 is:

Caleb Co. owns a machine that had cost $45,200 with accumulated depreciation of $19,800. Caleb exchanges the machine for a newer model that has a market value of $54,000. 1. Record the exchange assuming Caleb paid $31,400 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $23,400 cash and the exchange has commercial substance.