Ken Alberts owned equipment with an original cost of $45,000 with $38,000 of accumulated depreciation. The equipment was traded in on new equipment costing $60,000 with a trade-in allowance of $6,000 and the balance in cash. Determine the following.
a. The book value of the old machine was ________.
b. The loss on the exchange was ________.
c. The cost basis on the books for the new machine, assuming accounting rules, is ________.

Question

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The Answer of Ken Alberts owned equipment with an original cost of $45,000 with $38,000 of accumulated depreciation. The equipment was traded in on new equipment costing $60,000 with a trade-in allowance of $6,000 and the balance in cash. Determine the following.
a. The book value of the old machine was ________.
b. The loss on the exchange was ________.
c. The cost basis on the books for the new machine, assuming accounting rules, is ________.

Ken Alberts Owned Equipment with an Original Cost of $45,000