Equipment Acquired at a Cost of $126,000 Has a Book

question 56

Essay

Equipment acquired at a cost of $126,000 has a book value of $42,000. Journalize the disposal of the equipment under the following independent assumptions.(a)The equipment had no market value and was discarded.(b)The equipment is sold for $54,000.(c)The equipment is sold for $24,000.(d)The equipment is traded-in for a similar asset. The list price of the new equipment is $63,000. The buyer gave no cash in the exchange. The transaction lacks commercial substance.​

---

Definitions:

Ulna

One of the two long bones in the forearm, extending from the elbow to the smallest finger, and positioned on the side opposite to the thumb.

Tibia

The medial bone of the lower leg; commonly called the shin bone.

Synovial Joints

Flexible connections between bones that are lubricated by synovial fluid, allowing for a wide range of movements.

Fibrous Joint Capsule

A component of a joint surrounded by connective tissue that encloses the ends of bones in a joint, providing stability and strength.