Assume your company just sold a mainframe computer. The computer originally cost $300,000 and had accumulated depreciation of $100,000 on

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Assume your company just sold a mainframe computer. The computer originally cost $300,000 and had accumulated depreciation of $100,000 on the date of the sale. Instead of the buyer paying cash, she gave you a $400,000 noninterest-bearing note due and payable in 3 years. There is no established exchange price for the computer, and the note has no ready market. The prevailing rate of interest for a note of this type is 8%. What should your company record as a gain from the sale of this computer?

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Related Book For  answer-question

Advanced Financial Accounting

ISBN: 978-0132928939

7th edition

Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay

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Question Posted: February 27, 2017 09:54:02