Question: Brown s Salvage Corporation purchased a computer for 2 600 debiting
Brown’s Salvage Corporation purchased a computer for $ 2,600, debiting Computer Equipment. During 2012 and 2013, Brown’s Salvage recorded total depreciation of $ 2,000 on the computer. On January 1, 2014, Brown’s Salvage Company traded in the computer for a new one, paying $ 2,500 cash. The fair market value of the new computer is $ 4,000. Journalize Brown’s Salvage Corporation’s exchange of computers. Assume the exchange had commercial substance.
Answer to relevant QuestionsPurple Corporation purchased equipment for $ 15,000. Purple recorded total depreciation of $ 12,000 on the equipment. On January 1, 2014, Purple traded in the equipment for new equipment, paying $ 18,000 cash. The fair ...Everyday Hardware Consultants purchased a building for $ 540,000 and depreciated it on a straight-line basis over a 40-year period. The estimated residual value is $ 96,000. After using the building for 15 years, Everyday ...Community Bank recently traded in office fixtures. Here are the facts: Old fixtures: New fixtures: Cost .............. $ 96,000Cash paid ............ $ 103,000Accumulated depreciation ....... $ ...Best Parking, near an airport, incurred the following costs to acquire land, make land improvements, and construct and furnish a small building: a. Purchase price of three acres of land $ 89,000 b. Delinquent real estate ...Suppose you are an investment advisor and are looking at two companies to recommend to your clients, Shelly’s Seashell Enterprises and Jeremy Feigenbaum Systems. The two companies are virtually identical, and both began ...
Post your question