On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.
Assume the transaction has commercial substance.
a) Determine the gain to be recorded on the exchange.
b)Journalize the entry to record the exchange.

Question

On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.
Assume the transaction has commercial substance.
 a) Determine the gain to be recorded on the exchange. 
b)Journalize the entry to record the exchange.

Quizplus · Accepted Answer

The Answer of On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000.
Assume the transaction has commercial substance.
 a) Determine the gain to be recorded on the exchange. 
b)Journalize the entry to record the exchange.

On the First Day of the Fiscal Year, a New