Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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![A company purchased a new printing press for $250,000 and received a trade-
in allowance of $95,000 for their old press, paying the difference in cash. The
old press had an original cost of $180,000 and accumulated depreciation of
$75,000. If the transaction has commercial substance, at what amount should
the company record the new printing press?](https://content.bartleby.com/qna-images/question/28990736-1633-4633-aa43-60880aff30f3/cb4b77a4-7223-4e71-9e09-22cc2143c6c9/2i7abyo_thumbnail.jpeg)
Transcribed Image Text:A company purchased a new printing press for $250,000 and received a trade-
in allowance of $95,000 for their old press, paying the difference in cash. The
old press had an original cost of $180,000 and accumulated depreciation of
$75,000. If the transaction has commercial substance, at what amount should
the company record the new printing press?
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