Question
Use the following information to answer questions from 10 through 12 A machine cost 120,000 and has accumulated depreciation of 90,000 on December 31, 2018.
Use the following information to answer questions from 10 through 12
A machine cost 120,000 and has accumulated depreciation of 90,000 on December 31, 2018. On this date, the machine has a fair value of 27,500. it is exchanged for a new machine plus 100,000 cash is paid. The exchange has commercial substance.
What is the cost of the new machine?
Use the following information to answer questions from 10 through 12
A machine cost 120,000 and has accumulated depreciation of 90,000 on December 31, 2018. On this date, the machine has a fair value of 27,500. it is exchanged for a new machine plus100,000cash is paid. The exchange has commercial substance.
what is the gain or loss from this exchange? answer this by the amount only.
Use the following information to answer questions from 10 through 12
A machine cost 120,000 and has accumulated depreciation of 90,000 on December 31, 2018. On this date, the machine has a fair value of 27,500. it is exchanged for a new machine plus100,000cash is paid. The exchange has commercial substance.
The journal entry to record this exchange includes
Select one:
a. Debit the old machine by 120,000
b. Debit the new machine by 130,000
c. Debit the new machine by 120,000
d. Debit the new machine by 127,500
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Financial Accounting A Business Process Approach
Authors: Jane L Reimers
2nd Edition
131473867, 978-0131473867
