Question
On January 1st, 2012, Rogers Co. has purchased equipment that costs $96,000. It has accumulated depreciation of $48,000. On January 1, 2015, Rogers Co. exchanged
On January 1st, 2012, Rogers Co. has purchased equipment that costs $96,000. It has accumulated depreciation of $48,000.
On January 1, 2015, Rogers Co. exchanged its old equipment plus $5,000 cash for a new one. The fair value of the old equipment is estimated at $48,000.The exchange has no commercial substance. Rogers uses a straight-line depreciation method.
When recording the journal entry for this exchange, Rogers Co. debit the accumulated depreciation with:
Answer:
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Advanced Accounting
Authors: Debra C Jeter, Paul K Chaney
5th Edition
1118022297, 978-1118022290
