Thomas Company Trades in a Printing Press for a Newer

question 155

Multiple Choice

Thomas Company trades in a printing press for a newer model. The cost of the old printing press was $61,500, and accumulated depreciation up to the date of the trade-in amounts to $38,000. The company also pays $41,200 cash for the newer printing press. The journal entry to acquire the new printing press will require a debit to Equipment for:

• A) $41,200.
• B) $61,500.
• C) $64,700.
• D) $102,700.

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Definitions:

Loose Running Fit

A type of mechanical fit where components can move or rotate freely within each other, used for applications requiring minimal resistance.

Basic Diameter

The theoretical exact diameter of a cylindrical or conical feature as defined in a technical drawing, without any tolerances.

Minimum Hole Size

The smallest diameter of a hole that allows for the specified performance, fit, or clearance in a design.

Grade 9

In the context of materials or components, it may refer to a classification or quality level, but without further context, the specific meaning is less clear.