Rogers co had a sheet metal cutter that cost 110000 on

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Rogers Co. had a sheet metal cutter that cost $110,000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2015, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Rogers also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2014, and that straight-line depreciation is used.

Calculate the gain or loss to be recognized by rogers?

Prepare all journal entries that are necessary on April 3, 2015?

Reference no: EM13581012

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