A Company Exchanged Its Used Machine for a New Machine

question 62

Essay

A company exchanged its used machine for a new machine in a transaction that had commercial substance.The old machine cost $68,000,and the new one had a cash price of $95,000.The company had taken $59,000 depreciation on the old machine and was allowed a $2,500 trade-in allowance and the balance of $92,500 was paid in cash.What gain or loss should be recorded on the exchange?

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Definitions:

Southeast Asia

A geographical region located to the southeast of Asia, comprising countries such as Thailand, Vietnam, Indonesia, Malaysia, and the Philippines, known for its diverse cultures, languages, and histories.

Colonial Outposts

Small settlements or territories established by a country in foreign lands during the era of colonialism, often for trade, military, or strategic reasons.

Nationalist Leaders

Individuals who have played significant roles in advocating for the sovereignty and self-determination of their nations, often in the context of independence movements.

Midway Island

is a small U.S. territory in the Pacific Ocean, historically significant as a site of a pivotal naval battle between the United States and Japan during World War II.