Question

Asset exchange P5 Caleb Co. owns a machine that costs $ 42,400 with accumulated depreciation of $ 18,400. Caleb exchanges the machine for a newer model that has a market value of $ 52,000.
(1) Record the exchange assuming Caleb paid $ 30,000 cash and the exchange has commercial substance.
(2) Record the exchange assuming Caleb pays $ 22,000 cash and the exchange lacks commercial substance.



$1.99
Sales0
Views149
Comments0
  • CreatedNovember 26, 2013
  • Files Included
Post your question
5000