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QUESTION 4 . Dimarco Corporation exchanged old equipment that cost $ 2 5 0 , 0 0 0 ( accumulated depreciation of $ 1 4

QUESTION 4.
Dimarco Corporation exchanged old equipment that cost $250,000(accumulated depreciation of $140,000) for new equipment. The fair value of the new equipment is $125,000. The fair value of the old equipment could not be reliably estimated.
Write the entry to record the acquisition of the new equipment under each independent scenario.
4a. Transaction has commercial substance. Cash of $25,000 is paid by Dimarco.
4b. Transaction lacks commercial substance. Cash of $12,000 is paid by Dimarco.
4c. Transaction lacks commercial substance. Cash of $5,000 is received by Dimarco.
4d. Transaction has commercial substance. No cash is involved.

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