On March 1, 2014, Wallace Company purchased a new machine with a suggested retail price of $123,000. The new machine was to replace an old machine that originally cost $90,000 and had $36,000 of accumulated depreciation at the time of the exchange. The retailer was offering Wallace a trade-in allowance of $60,000. Record the exchange assuming the fair values are not known.
Answer to relevant QuestionsOn January 4, 2014, Amber’s Boutique paid cash of $95,000 for a 10-year franchise. Prepare the entry to record the purchase of the franchise and the adjusting entry at December 31, 2014.Wimberly Holdings acquired a delivery truck on January 1, 2014, for $86,000. It is expected to last five years and then sells for about $16,000. Calculate depreciation for each year of the truck’s life using the ...At its December 31, 2013, year-end, Folkstone Apparel had a warehouse with an adjusted book value of $292,500 and an estimated remaining useful life of 15 years and residual value of $90,000. Because of pick-up and delivery ...On September 5, 2014, Nelson Lumber purchased timber rights in Northern Quebec for $432,000, paying $96,000 cash and the balance by issuing a long-term note. Logging the area is expected to take three years, and the timber ...At December 31, 2013, Oroplata Exploration’s balance sheet showed total PPE assets of $802,000 and total accumulated depreciation of $339,980 as detailed in the PPE Subledger below. Oroplata calculates depreciation to the ...
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