Pepitone Inc

question 74

Essay

Pepitone Inc.exchanged a machine costing $400,000 with accumulated depreciation of $280,000 for a machine from the Berra Company.Berra paid $20,800 cash in addition to its machine (which cost $200,000 with accumulated depreciation of $68,000)for the Pepitone machine.The Berra machine has a fair value of $160,000.
Provide the necessary entries to record the transactions on both companies' books assuming the machine lacks commercial substance.

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Definitions:

Lymphocyte

A type of white blood cell that plays a vital role in the immune system, helping the body fight infection and disease.

Collagen

A major structural protein found in skin, bones, tendons, and other connective tissues, crucial for tissue strength and elasticity.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions and regulates physiological functions such as heart rate, digestion, and respiratory rate.

Sympathetic Nervous System

A component of the autonomic nervous system responsible for initiating the response commonly known as fight or flight.