Ralph Company exchanged a machine for some land.The machine had cost $15, 000, was 70% depreciated, and could be sold for $4, 100.Calvin paid $600 in addition to giving up the machine.
Required:
a. Compute the amount at which the land should be recorded.
b. Assume, instead, that Ralph exchanged the machine for a new, more efficient machine with a fair value of $ \$ 4,700 $, while still paying $ \$ 600 $ as before. Compute the gain or loss that would be recorded on the sale of the old machine by Ralph

Question

Ralph Company exchanged a machine for some land.The machine had cost $15, 000, was 70% depreciated, and could be sold for $4, 100.Calvin paid $600 in addition to giving up the machine.
Required:
 a. Compute the amount at which the land should be recorded.
b. Assume, instead, that Ralph exchanged the machine for a new, more efficient machine with a fair value of $ \$ 4,700 $, while still paying $ \$ 600 $ as before. Compute the gain or loss that would be recorded on the sale of the old machine by Ralph

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The Answer of Ralph Company exchanged a machine for some land.The machine had cost $15, 000, was 70% depreciated, and could be sold for $4, 100.Calvin paid $600 in addition to giving up the machine.
Required:
 a. Compute the amount at which the land should be recorded.
b. Assume, instead, that Ralph exchanged the machine for a new, more efficient machine with a fair value of $ \$ 4,700 $, while still paying $ \$ 600 $ as before. Compute the gain or loss that would be recorded on the sale of the old machine by Ralph

Ralph Company Exchanged a Machine for Some Land $4,700 \$ 4,700 $4,700

Ralph Company Exchanged a Machine for Some Land $\$ 4,700$