Dew Drops Company Purchased Equipment for $200,000

question 182

Essay

Dew Drops Company purchased equipment for $200,000.The company recorded total depreciation of $140,000.On January 1,2018,the company exchanges the equipment for new equipment,paying $150,000 cash.The fair market value of the new equipment is $250,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.Omit explanation.

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Definitions:

Coastline Uplifted

The rise of landmasses relative to the sea level, often caused by tectonic activities such as earthquakes or isostatic adjustments, leading to changes in coastal landscapes.

Subsided

The process by which an area of land sinks to a lower level than the surrounding land area, often due to natural geological processes or the extraction of underground resources.

1964 Alaskan Earthquake

A powerful seismic event that struck Southcentral Alaska on March 27, 1964, also known as the Great Alaskan Earthquake, the second most powerful earthquake ever recorded.

Plate Tectonics

The scientific theory explaining the movement of the Earth's lithosphere through processes such as spreading, subduction, and collision, which results in the formation of mountains, earthquakes, and volcanoes.