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A company purchased equipment valued at $190,000. It traded in old equipment for a $108,000 trade-in allowance and the company paid $82,000 cash with the trade-in. The old equipment cost $170,000 and had
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A company purchased equipment valued at $190,000. It traded in old equipment for a $108,000 trade-in allowance and the company paid $82,000 cash with the trade-in. The old equipment cost $170,000 and had accumulated depreciation of $68,000. This transaction has commercial substance. What is the recorded value of the new equipment

User Kai Sellgren
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Answer: $190,000

Step-by-step explanation:

The recorded value of the new equipment will be the summation of the trade in allowance and the cash that was paid. This will be:

= $108,000 + $82,000

= $190,000

User Blancos
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