Question

Cedric Company recently traded in an older model computer for a new model. The old model's book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $200,000. Cedric paid $60,000 to complete the exchange which has commercial substance.

Required:
Prepare the journal entry to record the exchange.



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  • CreatedJuly 02, 2013
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