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?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 53P

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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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