Gain or loss on the exchange after bringing accumulated depreciation upto the date of transaction. Given Information: Cost of machine acquired on January 1, 2010 is $260,000. Useful life of machinery is 10 years. Scrap value of the machinery is $20,000. On August 1, 2015; old machine was exchanged for new machine. Market value of new machinery is $157,250. Cash received mounted to $27,750. Fair value of old machine is $185,000.
Gain or loss on the exchange after bringing accumulated depreciation upto the date of transaction. Given Information: Cost of machine acquired on January 1, 2010 is $260,000. Useful life of machinery is 10 years. Scrap value of the machinery is $20,000. On August 1, 2015; old machine was exchanged for new machine. Market value of new machinery is $157,250. Cash received mounted to $27,750. Fair value of old machine is $185,000.
Solution Summary: The author calculates gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.
I need assistance with this general accounting question using appropriate principles.
given answer with calculation
Accounting records are maintained on a computer using proprietarysoftware.Your assistant is a newly recruited business graduate who has done an accounting course buthas no practical experience.Because of the small size of the company there is limited opportunity for segregation ofduties. You decide, as in previous years, that the appropriate audit strategy is to obtainevidence primarily through the performance of substantive procedures. You also plan toperform the audit around the computer as the proprietary software is known to be reliable anddetails of all transactions and balances can be readily printed out.On arriving at the company's premises in December 2019 to perform the final audit on the 31October 2019 financial statements, you obtain a copy of the year end bank reconciliationprepared by the bookkeeper and checked by the managing director. This is reproduced below.
Balance per bank statement 31 October 2019: $36752.00Deposits outstanding:30 October…
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