Final answer:
The recorded value of the new equipment after taking into account the trade-in allowance and cash paid is $243,000. This figure is the sum of the $180,000 trade-in allowance for the old equipment and the additional $63,000 cash payment made.
Step-by-step explanation:
The recorded value of the new equipment in a company transaction involves several steps to determine. First, the original cost of the old equipment is subtracted by the accumulated depreciation to find its book value. The difference between the trade-in allowance and the book value of the old equipment represents a gain or loss on the exchange.
The original cost of the old equipment was $220,000, and the accumulated depreciation was $44,000. This gives a book value of $176,000 ($220,000 - $44,000). The trade-in allowance for the old equipment is $180,000, which is higher than its book value, indicating a gain of $4,000 ($180,000 - $176,000).
The cash paid with the trade-in was $63,000. To find the recorded value of the new equipment, we add the cash paid to the trade-in allowance, resulting in $243,000 ($180,000 + $63,000). Thus, the company should record the new equipment at a value of $243,000, combining the cash paid with the trade-in value.