Subramanian Company has equipment with an original cost of $95,000 and, as at December 31, 2013, accumulated

Question:

Subramanian Company has equipment with an original cost of $95,000 and, as at December 31, 2013, accumulated depreciation of $78,000. On January 7, 2014, Subramanian exchanges the equipment for new equipment with a list price of $110,000. The gives Subramanian a $20,000 trade-in allowance on the old equipment even though its fair value is only $15,000. Record the January 7, 2014, journal entry for the equipment exchange.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...