Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment.

The equipment was purchased on account for $$40,000.$ Credit terms were $210/,$n$30/.$

Payment was made within the discount period and the company records the purchases of equipment net of discounts.

Connors gave the seller a noninterest$-$bearing note. The note required payment of $$42,000$ one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of $12\%$ properly reflects the time value of money in this situation.

Connors traded in old equipment that had a book value of $$13,500($original cost of $$29,000$ and accumulated depreciation of $$15,500)$ and paid cash of $$37,000.$ The old equipment had a fair value of $$8,500$ on the date of the exchange. The exchange has commercial substance.

Connors issued $2,500$ shares of its no$-$par common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $$40,000$ in cash.