Question
On January 1, 2020, a machine was purchased for $12,000. The machine was estimated to have a 10-year useful life and a residual value of
On January 1, 2020, a machine was purchased for $12,000. The machine was estimated to have a 10-year useful life and a residual value of 8500. Straight-line depreciation is to be used. On January 1, 2022, the machine was then exchanged for computer equipment with a fair value of $10,000. Assuming that the exchange had commercial substance, how much would be recorded as a gain on disposal of the machine on January 1, 2022?
A.$500
B.$0
C.$300
D.$400
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Correct Option C 300 Explanation Exchange with Commercial Substances Fair Value is determinable Rea...
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
