On November 3, 2020, Gamez 2 Go Media exchanges an old computer for a new computer that had a list price of $220,000. The original cost of the old computer was $180,000 and related accumulated depreciation was $80,000 up to the date of the exchange. Gamez 2 Go took a trade-in allowance of $115,000 and paid the balance in cash.

Record the exchange assuming the fair values are unknown?

Journal Entries: Exchange of the computers

Date	Particulars	Debit	Credit
Nov 03, 2020

Assume that the fair value of the new asset was $189,000. Record the exchange

Date	Particulars	Debit	Credit
Nov 03, 2020

What is the dollar value that will be used to depreciate the new computer in part b.

Analysis Component:

Dollar value