1) New equipment is 160,000 at beginning of fiscal year.
2) Estimated useful life of 4 years
3) Estimated residual value of $16,000.
4) First week of 4th year, equipment was traded for similar equipment priced at $200,000.
5) Trade-in allowance on old equipment was $24,000.
6) Cash paid was $16,000 & rest in note payables.
This is a homework problem that I can't solve. Don't worry. It is not a test question or anything. The text book doesn't go into detail about the problems.
1) For financial reporting purposes, how do you determine the cost of the new equipment acquired in the exchange.
2) Journalize the entry to record the exchange. My debit amount for accumulated depreciation for the equipment and debit for equipment is wrong. Can anybody help me? Thanks.
2007-07-28
20:48:44
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2 answers
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asked by
brit_maverick
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