Question

Atco Industries had a piece of equipment that cost $25,000 and had accumulated depreciation of $23,000.
Requirement
Record the disposition of the equipment assuming the following independent situations:
a. Atco discarded the equipment, receiving $0.
b. Atco sold the equipment for $3,000 cash.
c. Atco traded the equipment in on a new piece of equipment costing $30,000. Atco was granted a $5,000 trade-in allowance for the old equipment and paid the difference in cash.
d. Atco traded the equipment in on a new piece of equipment costing $20,000. Atco was granted a $1,000 trade-in allowance for the old equipment and signed a note payable for the difference.


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  • CreatedJuly 08, 2015
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