Asset Exchange - No Commercial Substance Turkey Corp

question 504

Essay

Asset exchange - no commercial substance Turkey Corp.has a computer that they purchased on March 30, 2010 for $106,000.This computer had an estimated life of ten years and a residual value of $6,000.On December 31, 2014, the old computer is exchanged for a similar computer with a fair value of $58,000.Turkey also received $2,000 cash.Assume that the last fiscal period ended on December 31, 2013, and that straight-line depreciation is used. Instructions Prepare all entries that are necessary on December 31, 2014.

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Definitions:

Sum Menu

A functionality or option in software applications, especially spreadsheets, that totals selected numerical values.

Name Box Area

A feature in spreadsheet software like Microsoft Excel that displays the address of the selected cell or range of cells.

Arithmetic Operator

Symbols used in mathematics and programming to perform standard arithmetic operations such as addition, subtraction, multiplication, and division.

Division Operation

A mathematical operation represented by the symbol "/", involving the splitting of a quantity into equal parts or groups.