Question: ABC Catering Company purchased a computer for $3,000, debiting Computer Equipment. During 2016 and 2017, ABC Catering recorded total depreciation of 2.200 on the computer

ABC Catering Company purchased a computer for $3,000, debiting Computer Equipment. During 2016 and 2017, ABC Catering recorded total depreciation of 2.200 on the computer On January 1, 2018, ABC Catering traded in the computer for a new one, paying $2.500 cash. The fair market value of the new computer is $3,800. Journaline ABC Catering's exchange of computers. Assume the exchange had commercial substance Let's begin by calculating the pain or loss on the exchange of computer equipment on January Market value of assets received Less Rook value of net exchanged Cash paid Gain or Loss) Joumalize ABC Catering's exchange of computers (Record a single compound journal entry Record debits first the credits. Select the explanation on the last line of the journal anty table) Date Accounts and Explanation Debit Credit Jan 1

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