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

question 159

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.
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Definitions:

Appellate Court

A higher court, usually consisting of more than one judge, that reviews the decision and results of a lower court (either a trial court or a lower-level appellate court) when a losing party files for an appeal. Appellate courts do not hold trials but may request additional oral and written arguments from each party; they issue written decisions, which collectively constitute case law or the common law. Also called court of appellate jurisdiction.

Trial Court

The level of court in which civil and criminal cases are initially tried and judged, as opposed to appellate courts which review decisions made by trial courts.

Remands

The process of sending a case back to a lower court from a higher court, or the act of placing a person in custody pending trial.

Ruling

An official decision or judgment made by a judge or governing body.