Question

On January 2, 2014, Dusseault Apparel disposed of a machine that cost $84,000 and had been depreciated $45,250. Present the journal entries to record the disposal under each of the following unrelated assumptions:
a. The machine was sold for $32,500 cash.
b. The machine was traded-in on new tools having a $117,000 cash price. A $40,000 trade-in allowance was received, and the balance was paid in cash. Since the tools have been customized, the fair values are not known.
c. The machine plus $68,000 was exchanged for a cube van having a fair value of $104,000.
d. The machine was traded for vacant land adjacent to the shop to be used as a parking lot. The land had a fair value of $75,000, and Dusseault paid $25,000 cash in addition to giving the seller the machine.



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  • CreatedJanuary 08, 2015
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