What cost will the new equipment be recorded in the books

Assignment Help Financial Accounting

Reference no: EM131204908

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,000,at what cost will the new equipment be recorded in the books? a. $45,000 b. $51,000 c. $54,000 d. $50,000

Reference no: EM131204908

Questions Cloud

Accounts for the stockholders equity accounts listed : Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 2016, are as follows: Common stock, $20 stated value; 500,000 shares authorized, 399,000 issued $7,980,0..

Journalize the entries to record the may transactions : On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: Preferred 2% Stock, $50 par (240,000 shares authorized, 84,000 shares issued) $4,200,000 Paid-In Capital in Excess o..

Partial equity method for internal accounting purposes : Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2014, for $652,000 in cash. Annual excess amortization of $13,700 results from this transaction. What would be the amount of consolidated retained earnings on December 31..

Calculate the firms cash conversion cycle : American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. Calculate the firm..

What cost will the new equipment be recorded in the books : A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar asset priced at $50,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,000,at what cost will the..

Determine the amount of tax liability for the corporation : Determine the amount of tax liability for the corporation in each of the following cases. Use corporate tax table. (Round your answer to the nearest whole dollar amount.)

Manufactures and sells two types of beach towels-standard : Princess Ariel Company manufactures and sells two types of beach towels, standard and deluxe. sales= standard 450,000 and deluxe 50,000. Variable Expenses= standard 360,000 and deluxe 20,000 The company budgets the following sales and variable costs...

Annual sales necessary for this product to break even : Off Road, Inc. (ORI) is considering a new product—a shock absorbing seat cushion to be sold to its Dune Buggy customers. Currently, ORI does not sell any accessories, so this product will not affect the sales or costs of any other product. Management..

Description of issues associated with the income statement : Which of the following is the best description of issues associated with the income statement?

User Account

All Pages