On the First Day of the Fiscal Year, a New

question 10

Essay

On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.
Assume the transaction has commercial substance.
a) Determine the gain to be recorded on the exchange.
b)Journalize the entry to record the exchange.

---

Definitions:

Bone Resorption

The process by which bone tissue is broken down by the body, involving the release of minerals from the bone into the bloodstream.

Osteoporosis

A condition characterized by weakened bones that are more prone to fracture, often occurring with age or hormonal changes.

Metabolic Disease

A broad category of diseases that affect the metabolism, including disorders of carbohydrate metabolism, lipid metabolism, and more, often genetic in nature.

Gout

A form of arthritis caused by excess uric acid in the bloodstream, resulting in painful swelling, typically in the joints of the feet.