January 5th Problem: Traded in all of used computer equipment with a fair value of $13,200,000.,...

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January 5th Problem: Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used. Journal Entry: Debit to Computer Equipment - New for $11,947,059 Debit to Accumulated Depreciation - Computer Equipment for $100,000 Debit to Cash for $500,000 Credit to Computer Equipment - Old for $12,500,000 Credit to Gain on Disposal - Computer Equipment for $47,059 January 5th Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used. The trade is for non-commercial subtance. January 5th Problem: Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used. Journal Entry: Debit to Computer Equipment - New for $11,947,059 Debit to Accumulated Depreciation - Computer Equipment for $100,000 Debit to Cash for $500,000 Credit to Computer Equipment - Old for $12,500,000 Credit to Gain on Disposal - Computer Equipment for $47,059 January 5th Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used. The trade is for non-commercial subtance.

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