Machinery Acquired at a Cost of $80,000 and on Which

question 25

Essay

Machinery acquired at a cost of $80,000 and on which there is accumulated depreciation of $55,000
(including depreciation for the current year to date) is exchanged for similar machinery. Assume that the transaction has commercial substance. For financial reporting purposes, present entries to record the exchange of the machinery under each of the following assumptions:
(a)Price of new, $120,000; trade-in allowance on old, $4,000; balance paid in cash.
(b)Price of new, $120,000; trade-in allowance on old, $34,000; balance paid in cash.

---

Definitions:

Negative Charge

An electrical charge that results from an excess of electrons in an atom or molecule, leading to an attraction to positively charged particles.

Action Potential

A transient electrical charge that travels along a neuron's axon, enabling neural communication.

Glial Cells

Non-neuronal cells in the central nervous system that support, nourish, and protect neurons.

Signaling System

A signaling system involves the transmission of signals or messages between cells or organisms to coordinate functions, responses, or behaviors.