Transaction #22

Date:8-4

Mr. Martinez buys a new tractor worth $140,000

In the deal, he trades-in his old tractor. He receives $20,000 for the trade-in value and pays cash for the difference

the other tractor was purchased 8 years ago for a cost of $120,000 and now has accumulated depreciation of $95,000

the new tractor has an expected salvage value of $14,000 and an expected Ive of 15 years.

This is for my farm accounting class. Need this as a journal entry.