Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated, and could be sold for $4,500. Robertson paid $950 in addition to giving up the machine.
Required:
a.Compute the amount at which the land should be recorded.
b.Assume, instead, that Robertson exchanged the machine for a new, more efficient machine with a fair value of $4,700, while still paying $950 as before. Compute the gain or loss that would be recorded on the sale of the old machine by Roberto

Question

Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated, and could be sold for $4,500. Robertson paid $950 in addition to giving up the machine.
Required: 
a.Compute the amount at which the land should be recorded.
b.Assume, instead, that Robertson exchanged the machine for a new, more efficient machine with a fair value of $4,700, while still paying $950 as before. Compute the gain or loss that would be recorded on the sale of the old machine by Roberto

Quizplus · Accepted Answer

The Answer of Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated, and could be sold for $4,500. Robertson paid $950 in addition to giving up the machine.
Required: 
a.Compute the amount at which the land should be recorded.
b.Assume, instead, that Robertson exchanged the machine for a new, more efficient machine with a fair value of $4,700, while still paying $950 as before. Compute the gain or loss that would be recorded on the sale of the old machine by Roberto

Robertson Company Exchanged a Machine for Some Land