Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / A company exchanges its old office equipment and $40,000 for new office equipment
A company exchanges its old office equipment and $40,000 for new office equipment. The old office equipment has a book value of $28,000 and a fair market value of $20,000 on the date of the exchange. The cost of the new office equipment would be recorded at
Required:
Cost of new office equipment = Fair market value of old equipment + Cash paid
= $20,000 + $40,000
= $60,000.
Thus, the cost of the new office equipment =$60,000.
