Assume that in the scenario in Exercise 8 the trade-in value was $11,000. a. What is the

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Assume that in the scenario in Exercise 8 the trade-in value was $11,000.

a. What is the book value of the old machine? What is the gain?

b. Provide a journal entry to record the exchange.

In Exercise 8, Carol Co. traded in an old machine costing $22,000 for a new machine for a cash price of $18,000 with a trade-in allowance of $7,000. Accumulated Depreciation on the old machine was $14,000.

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College Accounting A Practical Approach

ISBN: 978-0133133233

12th edition

Authors: Jeffrey Slater

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Question Posted: Apr 24, 2014 10:32 AM

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Assume that in the scenario in Exercise 8 the trade-in value was $11,000. a. What is the

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