EC has an old asset that originally cost $150,000; the accumulated amortization is $76,000. Its current market value is $81,000. This old asset is exchanged for another asset (new) that has a list price of $100,000. EC should record the following as the cost of the new asset received, assuming that the two assets are:

Dissimilar Similar

1 $100,000 $81,000

2 81,000 76,000

3 81,000 74,000

4 90,000 74,000

Question

EC has an old asset that originally cost $150,000; the accumulated amortization is $76,000. Its current market value is $81,000. This old asset is exchanged for another asset (new) that has a list price of $100,000. EC should record the following as the cost of the new asset received, assuming that the two assets are:

	Dissimilar	Similar
1	$100,000	$81,000
2	81,000	76,000
3	81,000	74,000
4	90,000	74,000

Quizplus · Accepted Answer

The Answer of EC has an old asset that originally cost $150,000; the accumulated amortization is $76,000. Its current market value is $81,000. This old asset is exchanged for another asset (new) that has a list price of $100,000. EC should record the following as the cost of the new asset received, assuming that the two assets are:

	Dissimilar	Similar
1	$100,000	$81,000
2	81,000	76,000
3	81,000	74,000
4	90,000	74,000

EC Has an Old Asset That Originally Cost $150,000; the Accumulated