Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500 cash. The transaction lacked commercial substance. Required: Compute the amount at which Mathison should record the new tractor.
Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500 cash. The transaction lacked commercial substance. Required: Compute the amount at which Mathison should record the new tractor.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 44E: Cost of a Fixed Asset Colson Photography Service purchased a new digital imaging machine on April 15...
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Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500
cash. The transaction lacked commercial substance.
Required:
Compute the amount at which Mathison should record the new tractor.
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%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa048ceca-7375-441e-8f01-d9cb05371f0e%2F88eb04c1-f338-4669-a045-5d760dc613e6%2F1we95nm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MindTap- Cengage Leaming
CengageNOWv2| Online teachin x
n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress3false
Q * G * O
Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a new tractor with a fair value of $12,000. Mathison paid an additional $4,500
cash. The transaction lacked commercial substance.
Required:
Compute the amount at which Mathison should record the new tractor.
Check My Work 1 more Check My Work uses remaining
Previous
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%24
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