Ken Applegate owned equipment with an original cost of $30,000 with $20,000 of accumulated depreciation.The equipment was traded in on new equipment costing $50,000 with a trade-in allowance of $8,000 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 Applegate owned equipment with an original cost of $30,000 with $20,000 of accumulated depreciation.The equipment was traded in on new equipment costing $50,000 with a trade-in allowance of $8,000 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 Applegate Owned Equipment with an Original Cost of $30,000