A fixed asset with a cost of $36,671 and accumulated depreciation of $33,004 is traded for a similar asset priced at $53,888 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,581, at what cost will the new equipment be recorded in the books? a.$914 b.$4,581 c.$32,090 d.$53,888

A fixed asset with a cost of $36,671 and accumulated depreciation of $33,004 is traded for a similar asset priced at $53,888 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,581, at what cost will the new equipment be recorded in the books? a.$914 b.$4,581 c.$32,090 d.$53,888

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A…
A fixed asset with a cost of $29,079 and accumulated depreciation of $26,171 is traded for a similar asset priced at $67,300 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,497, at what cost will the new equipment be recorded in the books? a. $67,300 b. $5,497 c. $2,589 d. $23,582
A fixed asset with a cost of $32,265 and accumulated depreciation of $29,039 is traded for a similar asset priced at $64,781 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,727, at what cost will the new equipment be recorded in the books? a.$64,781 b.$27,538 c.$4,727 d.$1,501
A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145
A fixed asset with a cost of $28,202 and accumulated depreciation of $25,382 is traded for a similar asset priced at $55,381. Assuming a trade-in allowance of $4,724, the cost basis of the new asset in a transaction with commercial substance is Select the correct answer. $55,381 $23,478 $1,904 $4,724
A fixed asset with a cost of $54,589.00 and accumulated depreciation of $46,400.65 is traded for a similar asset priced at $71,951.00. Assuming a trade-in allowance of $5,940.00, the recognized loss on the trade is Select the correct answer. $2,248.35 $5,940.00 $8,188.35 $25,550.35
Asset Traded for Similar Asset A printing press priced at a fair market value of $606,400 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $266,800, what is the amount of cash given? $ b. Assuming that the book value of the press traded in is $240,100, what is the gain or loss on the exchange?
The fair value of an asset stood at OMR 300 and cost to sell these assets in the market is OMR 40, The preset value of future cash inflows from the asset is OMR 270. What is the recoverable amount? O a. OMR 300. O b. OMR 40. OC OMR 270. O d. OMR 260.
don't give answer in image format
Subject: acounting
If a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a fair value of $300,000 plus cash of $100,000 for a new asset, what is the gain or loss recognized on the transaction?
A fixed asset with a cost of $33,769.00 and accumulated depreciation of $30,392.10 is sold for $5,740.73. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. $2,363.83 gain $2,363.83 loss $3,376.90 loss $3,376.90 gain