Ask Experts Questions for FREE Help !
Ask
    Momo12's Avatar
    Momo12 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 29, 2012, 09:55 AM
    recording asset trade-ins and sales
    Traded in a copy machine that had been purchased for $5200 on December 29, 2009. Straight-line depreciation of the old copier has been based on estimated useful life of five years, with salvage value of $800. The new copier had a purchase price and value of $12000. Received a trade-in allowance of $3500 on the old machine and paid cash of $8500. The new copier has a useful life of five years and an estimated salvage value of $600.

    Compute depreciation to nearest whole dollar, and record in journal form.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Jul 1, 2012, 03:16 PM
    Quote Originally Posted by Momo12 View Post
    Traded in a copy machine that had been purchased for $5200 on December 29, 2009. Straight-line depreciation of the old copier has been based on estimated useful life of five years, with salvage value of $800. The new copier had a purchase price and value of $12000. Recived a trade-in allowance of $3500 on the old machine and paid cash of $8500. The new copier has a useful life of five years and an estimated salvage value of $600.

    Compute depreciation to nearest whole dollar, and record in journal form.
    Well what do you think?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Asset trade-in [ 3 Answers ]

How do you account for a trade-in of an old asset for a new one? Is the sales revenue that gets posted the full value of the new asset or the net value of the sale?

JE for removing/recording an asset & its trade in with liabilities [ 1 Answers ]

What is the journal entry to record purchase of an asset that was financed and the subsequent removal of an asset that was traded in to acquire such asset? The problem I am having is the trade in value was 119,680 and payoff was only 98,800 showing a gain of 20,880. The Liablity for the trade in is...

View more questions Search