XYZ Acquired Machine N from ABC

question 197

Essay

XYZ acquired Machine N from ABC. The machine had a cash price of $6,250. XYZ paid for the machine with $1,500 cash and traded in used Machine O, which is similar to N. Machine O originally cost $7,500 and had accumulated amortization of $3,000. Machine N had a market value of $5,500.
Give the entry for XYZ to record the exchange.

---

Definitions:

Marketing And Sales

Business disciplines focused on promoting and selling products or services, including market analysis and customer engagement strategies.

Value Creation

Value creation is the process through which businesses generate value for customers, shareholders, and the community through innovative products, services, and operational efficiencies.

Paint Quality

The characteristics of paint including durability, finish, coverage, and color retention, determining its suitability for specific tasks and conditions.

Value Chain Management

The optimization of activities involved in bringing a product from conception through production, distribution, marketing, and sales to the end-user.