Question: A machine that was purchased for $ 1 1 0 , 0 0 0 has accumulated depreciation of $ 7 0 , 0 0 0

A machine that was purchased for $110,000 has accumulated depreciation of $70,000. The business exchanges the machine for a new one. The new machine has a fair value of $120,000, and the business pays $110,000 cash. Assume the exchange has commercial substance. This exchange results in a
A. gain of $15,000
B. loss of $30,000
C. loss of $40,000
D. gain of $30,000
A machine that was purchased for $ 1 1 0 , 0 0 0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Question 1 A credit of $200 and a deduction of $200 result in the same tax savings. Answer: False Question 2 Amounts paid to a relative never qualify as child care expenses. Answer: False Question 3...

Q:

Income statement and balance sheet data for Great Adventures, Inc., are provided below. Revenues: GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 Service revenue (clinic,...

Q:

please help me understand this. i have attached every single oart of the 8-part question to show what has to be filled out. im sorry this is a burden but i really appreciate you and thank you:) SP 3...

Q:

Victor's Vittles had the following liabilities by the end of 2020 : Accounts Payable $45.000 Wages Payable $125.000 Uneamed Revenue $40,000(25% will be earned in 2021) Notes Payable $50,000 (\$10,000...

Q:

how to I filled up this part Credit Debit $ 38,364 13,318 2,645 2,160 3,060 8, 200 $ 0 22,000 Number 101 106 126 128 131 163 164 167 168 201 210 236 307 318 319 403 612 613 623 637 640 652 655 676...

Q:

Can you do these 40 multiple choice questions? I am looking for a tutor to help me with the rest of this semester for accounting class. Question 1 Allocating the cost of a natural resource over its...

Q:

Required and Question: 1.) Prepare entries for the year 2020 related to the above transactions. 2.) How much is the gain or loss on sale and trade-in of property, plant, and equipment? 3.) Prepare...

Q:

3/11 QUESTION 2: 100% + | John Ltd is a manufacturing company. Plant and machinery at 31 March 2021 comprise two items, a machine costing 40,000, purchased on 1 April 2018, and another machine...

Q:

Book & Co. has a machine that cost $15,000,000 on January 1, 2013. This old machine had an estimated life of ten years with no salvage value, accumulated depreciation of $7,500,000 and has current...

Q:

3. (5 points) Book \& Co, has a machine that cost $2,000,000 on January 1, 2016. This old machine had an estimated life of ten years with no salvage value, accumulated depreciation of $1,000,000 and...

Q:

Consider the indefinite integral sec(r) + sec(r) tan(r) dr. sec(r) + tan(z) Evaluate this integral using the substitution u = sec(x) + tan(x). (b) Simplify the original integrand in part (a) by...

Q:

Calculate the number of vacancies per cubic meter in iron at 855 The energy for vacancy formation is 1.08 eV/atom. Furthermore, the density and atomic weight for Fe are 7.65 g/cm3 and 55.85 g/mol...

Q:

A stock's _ _ _ _ _ _ _ _ serves as a measure of risk because it may indicate the degree of uncertainty surrounding the stock's future returns.

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...