Question

Caleb Co. owns a machine that costs $42,400 with accumulated depreciation of $18,400. Caleb exchanges the machine for a newer model that has a market value of $52,000 1. Record the exchange assuming Caleb paid $30,000 cash and the exchange has commercial substance. 2. Record the exchang e assuming Caleb pays $22,000 cash and the exchange lacks commercial substance. View transaction list Journal entry worksheet 2 Record the exchange assuming Caleb paid $30,000 cash and the exchange has commercial substance. Note: Enter debits before credits General Journal Debit Credit Transaction Record entry

Answer 1

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6 22,000 is paid by he company asse e F Debi creda To old equipmeu Tocasl to ecod the osse ei eac working Note :- calculate he valse ness mackins value 4 weco wać wee Origual cost cal paid-Aceu.mulate $46,000 he vakie he aiu/loss o u Caso