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Mariot Inc. trades its old equipment for new equipment with a $4,800 fair value. Mariot paid $2,800 cash on the exchange. Original cost of old
Mariot Inc. trades its old equipment for new equipment with a $4,800 fair value. Mariot paid $2,800 cash on the exchange.
Original cost of old equipment | $4,000 | |
Accumulated depreciation on old equipment | 3,200 |
If the transaction has commercial substance, what amount does Mariot assign to the new equipment?
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