Question: Purple Corporation purchased equipment for 15 000 Purple recorded total
Purple 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 market value of the new equipment is $ 20,000. Journalize Purple Corporation’s exchange of equipment. Assume the exchange had commercial substance.
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