Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new plant assets follow: Old Plant Asset Original cost $10,000 Accumulated depreciation of 7,000 Fair value 2,000 New Plant Asset List price 13,000 ? Robertson paid $10,500 cash in the trade. What should be the cost of the new plant asset for financial accounting
purposes?
A) $12,000
B) $12,500
C) $13,500
D) $13,000
B
Business
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