On the first day of the fiscal year, a new walk-in cooler with a list price of $47,300 was acquired in exchange for an old cooler and $41,400 cash. The old cooler had a cost of $41,000 and accumulated depreciation of $39,000. Assume the transaction has commercial substance. a. Determine the gain to be recorded on the exchange. b. Journalize the entry for the exchange. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a new walk-in cooler with a list price of $47,300 was acquired in exchange for an old cooler and $41,400 cash. The old cooler had a cost of $41,000 and accumulated depreciation of $39,000. Assume the transaction has commercial substance. a. Determine the gain to be recorded on the exchange. b. Journalize the entry for the exchange. If an amount box does not require an entry, leave it blank.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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