Black N White Company Purchased Equipment for $45,000

question 99

Essay

Black n White Company purchased equipment for $45,000. The company recorded total depreciation of $36,000 on the equipment. On January 1, 2015, Black n White traded in the equipment for new equipment, paying $65,000 cash. The fair market value of the new equipment is $65,000. Journalize the company's exchange of equipment. Assume the exchange had commercial substance.

---

Definitions:

Ambiguous Actions

Actions that can be interpreted in more than one way, often due to a lack of clear intent or information.

Hostility

Feelings of anger, aggression, or resentment towards others, often leading to antagonistic behavior.

Frustration-aggression Hypothesis

A psychological theory suggesting that the occurrence of aggressive behavior arises from individuals' frustration when their goal-directed behavior is blocked.

Frustration

A feeling of dissatisfaction, often resulting from unmet needs or unresolved problems.