Subject - account Please help me. Thankyou. Given the following:Equipment with an original costof $455,000 and accumulateddepreciation of $172,000 is tradedfor a new piece of equipment witha fair value of $285,000• Cash of $7,000 is received.a) What should the companyrecord as the cost of the newasset?b) How much gain is recognized?c) What is the journal entry torecord the cost of the new asset?Required: Show all work usingExcel

Cost of Old Asset = $455,000Accumulated Depreciation = $172,000Fair Value of New Asset =…

Answered: a) What should the company record as…

a) What should the company record as the cost of the new asset? b) How much gain is recognized? c) What is the journal entry to record the cost of the new asset?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Subject - account

Please help me.

Thankyou.

Given the following:
Equipment with an original cost
of $455,000 and accumulated
depreciation of $172,000 is traded
for a new piece of equipment with
a fair value of $285,000
• Cash of $7,000 is received.
a) What should the company
record as the cost of the new
asset?
b) How much gain is recognized?
c) What is the journal entry to
record the cost of the new asset?
Required: Show all work using
Excel

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