A company's old machine that cost $40,000 and had accumulated depreciation of $30,000 was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $50,000.The company also paid $43,000 cash,along with its old machine to acquire the new machine.The value of new machine should be recorded at:
A)$40,000
B)$47,000
C)$50,000
D)$53,000
E)$10,000

Question

Quizplus · Accepted Answer

11ea8a0c_353d_1f45_8b44_c71170e44c74_TB6314_00 Therefore the loss on the exchange is recognized and the new machine should be recorded at its price of $50,000.

A Company's Old Machine That Cost $40,000 and Had Accumulated