Robertson Company Exchanged a Used Machine for a New Machine

question 29

Essay

Robertson Company exchanged a used machine for a new machine.The old machine cost $80,000,and the new one had a cash price of $95,000.Robertson had recorded a total of $75,000 depreciation on the old machine and was allowed a $4,500 trade-in allowance.This transaction has commercial substance.What gain or loss should be recorded on the exchange?

---

Definitions:

Obesity

A medical condition characterized by excess body fat that presents a risk to health, typically defined by a body mass index (BMI) of 30 or higher.

Television Viewing

The activity of watching content on a television screen, which can include shows, movies, documentaries, or other visual media.

Childhood Asthma

A respiratory condition marked by spasms in the bronchi of the lungs, causing difficulty in breathing, and is often linked to allergic reaction or other forms of hypersensitivity in children.

Affluent Nations

Countries with high levels of prosperity and wealth, often measured by GDP per capita, experiencing better standards of living, education, and healthcare.