Question: Browns Salvage Corporation purchased a computer for $ 2,600, debiting Computer Equipment. During 2012 and 2013, Browns Salvage recorded total depreciation of $ 2,000 on

Brown’s Salvage Corporation purchased a computer for $ 2,600, debiting Computer Equipment. During 2012 and 2013, Brown’s Salvage recorded total depreciation of $ 2,000 on the computer. On January 1, 2014, Brown’s Salvage Company traded in the computer for a new one, paying $ 2,500 cash. The fair market value of the new computer is $ 4,000. Journalize Brown’s Salvage Corporation’s exchange of computers. Assume the exchange had commercial substance.

Step by Step Solution

★★★★★

3.39 Rating (158 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Market value of assets received 4000 Less Book value of asset exchanged Cost 2600 L... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

389-B-A-I-A (4686).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Vega and Theta Companies can borrow for a five-year term at the following rates: S&P's credit rating: Vega: AAA Theta: BBB Fixed-rate borrowing cost: Vega: 10.5% Theta: 12.0% Floating-rate borrowing...

The Acme Management Corporation purchased a computer for $5,400. Its life expectancy is projected to be four years, and the salvage value will be $800. Make a straight-line depreciation schedule like...

Assume that you have purchased a computer for business use; illustrate, using examples, capital and revenue expenditures associated with its purchase.

Browns Salvage Company purchased a computer for $2,600, debiting Computer equipment. During 2012 and 2013, Browns Salvage Company recorded total depreciation of $2,000 on the computer. On January 1,...

S10A-15 Exchanging plant assets Browns Salvage Company purchased a computer for $2,600, debiting Computer Equipment. During 2012 and 2013, Browns Salvage Company recorded total depreciation of $2,000...

Brown's Salvage Company purchased a computer for $2,600, debiting Computer Equipment. During 2016 and 2017 Brown's Salvage Company recorded total depreciation of $1,700 on the computer. On January 1,...

Brown's Salvage Company purchased a computer for \ ( \ $ 3 , 7 0 0 \ ) , debiting Computer Equipment. During 2 0 2 3 and 2 0 2 4 , Brown's Salvage Company recorded total depreciation of \ ( \ $ 1 , 4...

Brown's Salvage Company purchased a computer for $3,100 debiting Computer Equipment. Diring 2016 and 2017, Borwn's Salvage Company recored total depreciation of $2,200 on the computer. On January 1,...

Exchanging plant assets Browns Salvage Corporation purchased a computer for $2,600, debiting Computer Equipment. During 2012 and 2013, Browns Salvage recorded total depreciation of $2,000 on the...

The following trial balance has been extracted from the accounting system of Pendle Ltd at 31 March 1998: The finance director has asked your help in presenting the information in a form suitable for...

Complete the Kal expression for H2CO3 in an aqueous solution. Kal = 4.45 10-7 = Answer Bank [H3O+] [H2CO3] [CO] [H3O+] [HCO3]

Jordan and Paul, a married couple, have taxable income of $87,175, which is taxed as follows: $19,400 10% =$1,940.00 ($78,950 $19,400) 12% = 7,146.00 ($87,175 $78,950) 22% = 1,809.50 Total tax...

A conductor of uniform radius 1.20 cm carries a current of 3.00 A produced by an electric field of 120 V/m. What is the resistively of the material?

The amount of estimation uncertainty is affected by the nature of which of the following? Auditing estimate. Management bias. Accounting estimate. Accounting disclosure.

How does creativity contribute to the opportunity recognition process?

How does an extensive social network provide an entrepreneur an advantage in recognizing business opportunities?

What is entrepreneurial alertness and why is it important to entrepreneurs?

In what ways does prior industry experience provide an entrepreneur an advantage in recognizing business opportunities?

What is the meaning of the term opportunity recognition?

Ten - 10 (Comprehensive Case Covering Chapters 1 to 10 - Three Individuals) Zhi and Meng Liu are both 45 years old. They are married and support Zhis 19 year old son from his former marriage, Sheng....

Sandra Kristof sells furniture for McKinney Furniture Company. Kristof is having financial problems and takes $650 that she received from a customer. She rang up the sale through the cash register....

Review the internal controls over cash receipts by mail presented in the chapter. Requirement 1. Exactly what is accomplished by the final step in the process, performed by the controller?

Assume you Invest In a portfolio of U. S. Treasury bills and that the portfolio will earn a rate of return similar to the average return on U.S. Treasury bills for the period 1926-2013. What rate of...

Let x be a random variable representing dividend yield of bank stocks. We may assume that x has a normal distribution with=3.2%.A random sample of10 bankstocks gave the following yields (in...

Case Study: Building a New Urgent Care Center Its a slam dunk, said Kim, the marketing ana-lyst. The volumes weve forecasted ensure that the new urgent care center will be profitable within six...