During 2019,Storey Company Acquired a New Computer with a Cash

question 170

Essay

During 2019,Storey Company acquired a new computer with a cash price of $12,800 by exchanging an old one on which Storey received a $1,500 trade-in.The old computer had cost $9,000 and its accumulated depreciation to the date of exchange was $5,500.This transaction has commercial substance.Prepare the journal entry to record the exchange.

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Definitions:

Future Dividend

The dividends that a company expects to declare and pay to shareholders in upcoming periods, based on future earnings projections.

Dividend Payout

The portion of the earnings a company decides to pay to its shareholders in the form of dividends.

Stock Prices

The current market price of a company's shares, representing the valuation that the market assigns to a single share of the company's stock.

Dividend Policy

A company’s strategy or guidelines set for allocating a portion of its earnings back to its shareholders in the form of dividends.