Orange Corporation purchased equipment for $30,000. Orange recorded total depreciation of $24,000 on the equipment. On January

Question:

Orange purchased equipment for $30,000. Orange recorded total depreciation of $24,000 on the equipment. On January 1, 2016, Orange traded in the equipment for new equipment, paying $23,500 cash. The fair market value of the new equipment is $28,500. Journalize Orange Corporation’s exchange of equipment. Assume the exchange had commercial substance. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...