On the First Day of the Fiscal Year, a New

question 120

Essay

On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.Assume the transaction has commercial substance.
(a)Determine the gain to be recorded on the exchange.
(b)Journalize the entry to record the exchange.

---

Definitions:

P-value

A statistical measure indicating the probability of obtaining the observed results, or more extreme, assuming the null hypothesis is true.

ANOVA Table

A table used to summarize the data analysis for an Analysis of Variance, showing sources of variance, degrees of freedom, sum of squares, mean squares, and the F-statistic.

F-ratio

A statistical measure used in ANOVA testing that compares the variances between groups to variances within groups.

P-value

A statistic that measures the probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.