A company purchased equipment valued at $66,000. It traded in old equipment for a $9,000 trade-in allowance and the company paid $57,000 cash with the trade-in. The old equipment cost $44,000 and had accumulated depreciation of $36,000. This transaction has commercial substance. What is the recorded value of the new equipment?
A. $65,000.
B. $9,000.
C. $8,000.
D. $66,000.
E. $57,000.
Answer: D
Business
You might also like to view...
In a merchandising firm, authorization for the purchase of inventory is the responsibility of
a. inventory control b. purchasing c. accounts payable d. cash disbursements
Business
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $59,500; the land at $47,000, and the parking lot at $18,500. Land should be recorded in the accounting records with an allocated cost of:
A. $100,000. B. $37,600. C. $47,000. D. $43,600. E. $0.
Business
Define at-will employment?
What will be an ideal response?
Business
A distribution of profits to owners is called ____________________
Fill in the blank(s) with correct word
Business