Question
A fixed asset with a cost of $27,357 and accumulated depreciation of $24,621 is traded for a similar asset priced at $41,386 (fair market value)
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A fixed asset with a cost of $27,357 and accumulated depreciation of $24,621 is traded for a similar asset priced at $41,386 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,968, at what cost will the new equipment be recorded in the books?
a.$3,232
b.$21,389
c.$41,386
d.$5,968
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Financial Accounting An Introduction
Authors: Jacqui Kew, Alex Watson
4th Edition
0199046484, 978-0199046485
