exercise 10.23

What amount should be Record the exchange. Exercise 10-23 Exchanging PPE LO^6 On November 3, 2014, Yellow Media exchanged an old computer for a new computer that had a list price of $190,000. The original cost of the old computer was $ 150,000 and related accumulated depreciation was $65,000 up to the date of the exchange. Yellow Media received a trade-in allowance of $100,000 and paid the balance in cash. Required a. Record the exchange assuming the fair values are unknown. b. Assume that the fair value of the new asset was $174,000, record the exchange. Analysis Component: What is the dollar value that will be used to depreciate the new computer in part (b)? Explain which GAAP helped you answer the question correctly