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Bonita Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,880plus trade-in, f.o.b. factory. Bonita Inc. paid $10,880cash
Bonita Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,880plus trade-in, f.o.b. factory. Bonita Inc. paid $10,880cash and traded in used equipment. The used equipment had originally cost $84,320; it had a book value of $57,120and a secondhand fair value of $65,008, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $1,496.
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