The equipment was purchased on account for $$45,000.$ Credit terms were $210/,$n$30/.$

Payment was made within the discount period and the company records the purchases of equipment net of discounts.

Connors gave the seller a noninterest$-$bearing note. The note required payment of $$47,000$ one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of $10\%$ properly reflects the time value of money in this situation.

Connors traded in old equipment that had a book value of $$16,000($original cost of $$34,000$ and accumulated depreciation of $$18,000)$ and paid cash of $$42,000.$ The old equipment had a fair value of $$10,500$ on the date of the exchange. The exchange has commercial substance.

Connors issued $1,500$ shares of its no$-$par common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $$39,000$ in cash.