Question
A machine cost $20,000, has annual depreciation expense of $4,000, and has accumulated depreciation of $10,000 on December 31, 2018. On April 1, 2019, when
A machine cost $20,000, has annual depreciation expense of $4,000, and has accumulated depreciation of $10,000 on December 31, 2018. On April 1, 2019, when the machine has a fair value of $8,000, it is exchanged for a similar machine with a fair value of $24,000 and the proper amount of cash is paid. Prepare ALL entries that are necessary at April 1, 2019.
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
