Question
Marsh-de-Mello Company (MdM) owns a machine that cost originally $180,000, has annual depreciation expense of $36,000, and has accumulated depreciation of $90,000 on December 31,
Marsh-de-Mello Company (MdM) owns a machine that cost originally $180,000, has annual depreciation expense of $36,000, and has accumulated depreciation of $90,000 on December 31, 2019.
On April 1, 2020, when the machine has a fair value of $72,000, MdM exchanges it for a similar machine with a fair value of $216,000 and pays the necessary amount of cash. Assume that this transaction has economic substance.
Prepare all entries that are necessary at April 1, 2004 on MdM's books.
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
