Question
Machinery, Inc. is going to trade-in their old equipment for a new one. The new equipment is similar in nature to the old equipment, and
Machinery, Inc. is going to trade-in their old equipment for a new one. The new equipment is similar in nature to the old equipment, and therefore this exchange lacks commercial substance.
| Cost of equipment | 700,000 |
| Accumulated depreciation | 210,000 |
| Cash received | 68,600 |
| Fair value of the equipment | 617,400 |
| Total fair value | 686,000 |
What is the new equipment value at recorded by Machinery, Inc.?
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Auditing Your Human Resources Department A Step By Step Guide To Assessing The Key Areas Of Your Program
Authors: John H. McConnell
2nd Edition
0814416616, 978-0814416617
