Consolidated Technologies, Inc., a highly profitable enterprise, will be acquiring a major piece of equipment to be used in its manufacturing operations. Normally, we purchase this type of asset through a multi-year credit facility and the transaction is journalized as a Debit to Plant Assets and a Credit to Long-term Liabilities.

For this transaction, however, Consolidated will leverage an available special arrangement with the equipment manufacturer, Heavy Equipment Fabrication, Inc., which involves a more complex transaction analysis than the simple one I depict above. HEF, as the manufacturer is known throughout the industry, will permit us to structure the transaction as follows:

1. Purchase the equipment at market price.
2. Permit Consolidated to trade-in at fair value a twenty-year-old, fully depreciated piece of manufacturing equipment with a book value of $50,000 and a fair value of $75,000.
3. Cover the remainder of the purchase price (after the trade-in) with a multi-year loan. However, the loan will be payable with a fixed amount of $65,000 per annum for 5 years plus 3% of Consolidateds reported annual net income during the 5-year period that the loan is being repaid.
4. HEF will grant Consolidated a further discount equal to 50% of any profit it earns from the sale of the asset that Consolidated trades in.

Note that this is an arms-length transaction, and HEF is not related in any way to Consolidated. Senior management believe that this is a good deal for Consolidated, although the transaction is complex and unusual.

What I need you to do:

I need you to list the key accounting issues involved in this transaction and then search the FASBs codification system to identify the relevant ASC that applies to each key issue. Note that I do not need any journal entries at this time. I only need to know the applicable ASCs, cited as AAA-BB-CC-DD as explained below.

Citation format ASC (AAA-BB-CC-DD)

AAA = Topic

BB = Subtopic

CC = Section

DD = Paragraph

Citation examples ASC 210 (Topic 210, "Balance Sheet")

ASC 210-20 (Subtopic 20, "Offsetting," of Topic 210)

ASC 210-20-60 (Section 60, "Relationships," of Subtopic 210-20)

ASC 210-20-60-5 (Paragraph 60-5 of Section 210-20-60)

Use a table like the following to report your analysis of the issues:

Issue description (i.e., an excerpt of the transaction as described above)	Issue (brief summary of the issue that is searchable in the Codification system)	Relevant ASC in the form AA-BB-CC-DD.