MC Exchanged One of Its Milling Machines, Which Had Cost

question 164

Essay

MC exchanged one of its milling machines, which had cost $60,000 and on which amortization of $50,000 had been recorded for a smaller milling machine with a firm cash asking price of $14,000. MC received a cash difference (boot) of $6,000.
(A) Give the entry on MC's books to record the exchange.
(B) Refer to the data given immediately above. Assume the same facts, except that MC paid cash boot of $6,000. Record the exchange on MC's books.

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Definitions:

Bad Weather

Bad weather pertains to unfavorable or harsh meteorological conditions, such as heavy rain, snow, storms, or extreme temperatures, that can affect activities and safety.

Substitution

The act of replacing one element with another in various contexts, such as materials in manufacturing, ingredients in cooking, or components in a legal document.

Valid Obligation

A legally binding duty or commitment that is enforceable under the law.

Previous

Referring to something occurring before the current point in time or the item immediately before another in order or sequence.