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Question: 1. Esteban Co. owns a machine that costs $38,400 with accumulated depreciation of $20,400. Esteban exchanges the machine for a newer model that has a market value of $48,000.
(1) Record the exchange assuming Esteban paid $32,000 cash and the exchange has commercial substance.
(2) Record the exchange assuming Esteban pays $24,000 cash and the exchange lacks commercial substance.
2. Assume that a company buys another business and pays for its goodwill. If the company plans to incur costs each year to maintain the value of the goodwill, must it also amortize this goodwill?
eric lindros inc. retail store chain had the following information in its general ledger for the year 2009.
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