On October 1, Sebastian Company Acquired New Equipment with a Fair

question 38

Essay

On October 1, Sebastian Company acquired new equipment with a fair market value of $458,000. Sebastian received a trade-in allowance of $92,000 on the old equipment of a similar type and paid cash of $366,000. The following information about the old equipment is obtained from the account in the equipment ledger: Cost, $336,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $220,000; annual depreciation, $20,000. Assuming the exchange has commercial substance, journalize the entries to record:
(a) the current depreciation of the old equipment to the date of trade-in and
(b) the exchange transaction on October 1.

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Definitions:

Anomie

A state of normlessness or a breakdown in the societal norms governing individuals, leading to feelings of alienation and purposelessness.

Deviance

Behavior that violates the norms or cultural expectations of a society or community.

Peer Group Pressure

A phenomenon where individuals feel compelled to conform to the attitudes, behaviors, or values of their peers or social group.

Control Theories

In sociology and criminology, theories that explain social order as being maintained by social norms and institutions that encourage conformity and dissuade deviant behavior.