Question
Question 13 5 points Save Arome ihsan company trades its uned machine for a new model at Hosn stores. The exchange has commercial substance.
Question 13 5 points Save Arome ihsan company trades its uned machine for a new model at Hosn stores. The exchange has commercial substance. The used machine has ongrual cost of 20,000, accumulated depreciation of 5,000 and a fair value of 12,000, The price of the new model is 25,000 but Hosn stores offers Ihsan company a trade in afitwance of 10,000 for the used machine t marks Required A. Compute the cost of the new machine for ihsan company (1 mark B. Show the journal records of the transaction in the book of thsan company (1 mark) C. Explain these concepts as they appear in this question (3 marks) i Trade-in allowance Book value Fair value
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