Ken Applegate Owned Equipment with an Original Cost of $45,000

question 138

Short Answer

Ken Applegate owned equipment with an original cost of $45,000 with $38,000 of accumulated depreciation.The equipment was traded in on new equipment costing $55,000 with a trade-in allowance of $6,000 and the balance in cash.Determine the following.
a.The book value of the old machine was ________.
b.The loss on the exchange was ________.
c.The cost basis on the books for the new machine,assuming accounting rules,is ________.

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Definitions:

Rapid Mobilization

The quick assembly and deployment of resources, personnel, or forces, often in response to emergencies or urgent situations.

Physically Demanding

Activities or tasks that require a high level of physical effort and stamina.

Easily Interrupted

A characteristic of processes or actions that can be halted or disrupted with minimal effort.

Peasants

Small-scale producers of crops or livestock living on land self-owned or rented in exchange for labor, crops, or money and exploited by more powerful groups in a complex society.