How much is the initial cost of the equipment received

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Reference no: EM132817629

TRANSCEND EXCEED Co. traded in an old machine for a new model.

Pertinent data are as follows:

Old equipment:

Cost 200,000

Accumulated depreciation 80,000

Average published retail value 24,000

New equipment:

List price 380,000

Cash price without trade in 280,000

Cash price with trade in 220,000

Problem 1: How much is the initial cost of the equipment received by TRANSCEND Co.?

a. 244,000

b. 280,000

c. 320,000

d. 184,000

Problem 2: How much is gain (loss) on exchange recognized by TRANSCEND Co.?

a. 60,000

b. 160,000

c. (60,000)

d. 0

Reference no: EM132817629

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