Equipment Acquired at a Cost of $126,000 Has a Book $\$ 54,000$

question 158

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. ​
Journal $$\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Description } & \begin{array} { c } \text { Post. } \\\text { Ref. }\end{array} & \text { Debit } & \text { Credit } \\\hline & & & & \\\hline & & & & \\\hline & & & & \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline \\\hline\end{array}$$

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Definitions:

Hindbrain

The rear portion of the brain that includes the cerebellum, medulla oblongata, and pons, involved in the regulation of heart rate, respiration, and balance.

Heartbeat

The rhythmic contraction and relaxation of the heart muscle that circulates blood throughout the body, crucial for maintaining life by supplying oxygen and nutrients.

Respiration

The biological process involving the exchange of gases between an organism and its environment, enabling breathing.

Instinctive Behavior

Instinctive behavior is an innate, unlearned response pattern exhibited by an organism when presented with certain stimuli.