Question: Obssuth Company is trading in its old computer system for
Obssuth Company is trading in its old computer system for an ERP system. The old system is on the books at a cost of $ 1,270,000 with accumulated depreciation of $ 885,000. The ERP has a price of $ 4,500,000 installed and debugged, but the manufacturer has agreed to reduce this amount by $ 250,000 in return for Obssuth’s old system. Prepare the journal entry to record the acquisition of the new ERP system.
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