Valix Finacc vol 1 Problem 15-16

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 15 Problem 15-16

Cash price without trade in                                                                                     1,400,000

Cash payment                                                                                                            980,000

Trade in value                                                                                                              420,000

Less: Book value                                                                                                          400,000

Gain on exchange                                                                                                        20,000

Equipment - new                                                                                 1,400,000

Accumulated depreciation                                                                   600,000

         Equipment – old                                                                                               1,000,000

         Cash                                                                                                                   980,000

         Gain on exchange                                                                                               20,000