Question

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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  • CreatedApril 24, 2014
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