Calculate the gain or loss to be recognized by rogers co

Reference no: EM131971978

Problem

Rogers Co. had a sheet metal cutter that cost $107,000 on January 5, 2013. This old cutter had an estimated life of ten years and a salvage value of $15,000. On April 3, 2018, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Rogers also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2017, and that straight-line depreciation is used.

Calculate the gain or loss to be recognized by Rogers Co.

Prepare all entries that are necessary on April 3, 2018.

Reference no: EM131971978

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