Equipment costing $120,000 has accumulated depreciation of $97,000. The equipment is a trade-in for new equipment costing $190,000. If the trade-in value received for the old equipment is $36,000, the journal entry to record this transaction is to:
A) debit Equipment (New) for $190,000, and credit Cash for $190,000.
B) debit Equipment (New) for $190,000, debit Accumulated Depreciation - Equipment for $97,000, credit Equipment (Old) for $120,000 and credit Cash for $167,000.
C) debit Equipment (New) for $190,000, debit Accumulated Depreciation - Equipment for $97,000, debit Loss on Exchange of Assets for $23,000, credit Equipment (Old) for $120,000, credit Cash for $190,000.
D) debit Equipment (New) for $190,000, debit Accumulated Depreciation - Equipment for $97,000, credit Gain on Exchange of Assets for $13,000, credit Equipment (Old) for $120,000 and credit Cash for $154,000.
Correct Answer:
Verified
Q109: Instead of using an accumulated amortization account
Q110: Patents to produce and sell inventions are
Q111: Equipment costing $73,000 has accumulated depreciation of
Q112: Which of the following is often rendered
Q113: A patent is the exclusive right to
Q115: The Miami Dolphins and New York Yankees
Q116: Which of the following accounts would be
Q117: Nike would be an example of a:
A)trademark.
B)copyright.
C)brand
Q118: Equipment costing $123,000 has accumulated depreciation of
Q119: The slogan "Can you hear me now?"
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents