A Computer Server System, Which Had Cost $250,000 and Had

question 129

Essay

A computer server system, which had cost $250,000 and had accumulated depreciation of $170,000, was traded for a new system with a fair market value of $245,000. The old system and cash of $210,000 were given for the new system. Prepare the journal entry for the exchange of these similar assets assuming the income tax method is used to record the exchange.

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Definitions:

Scientific Revolutions

Periods of transformative change and paradigm shifts in the scientific community, characterized by the adoption of new theories and methodologies that significantly alter understanding and knowledge.

Democratic Revolutions

Refers to major political upheavals aimed at establishing more democratic systems of government, typically involving mass participation and demands for political reform.

Sociologists

Experts in sociology, the study of society, social institutions, and social relationships, focusing on understanding patterns of social behavior and organizational structure.

Protestant Ethic

A concept relating to the values of hard work, thrift, and efficiency in one's worldly calling, attributed to the rise of the capitalist economy, particularly associated with the teachings of Protestantism.