a machine that cost 9 050 with 3 940 of accumulated depreciation a machine that cost 4136539

February 11, 2021/in Business Homework Help Online /by Joseph

A machine that cost 9 050 with 3 940 of accumulated depreciation

A machine that cost $9,050 with $3,940 of accumulated depreciation was traded in for a similar machine having a $5,870 cash price. An $820 tradein was offered by the seller.

a. Calculate the book value of the old machine.

b. Calculate the loss on the exchange.

c. Prepare the journal entry for the exchange.

d. Calculate the cost basis of the new equipment if the income tax method is used and prepare a journal entry.

A machine that cost 9 050 with 3 940 of accumulated depreciation

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