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givi [52]
3 years ago
5

When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be reco

rded with the following entry (assuming the exchange was considered to have commercial substance)?
a. debit Cash and Machinery; credit Accumulated Depreciation and Machinery
b. debit Machinery and Accumulated Depreciation; credit Machinery, Cash, and Gain on Disposal
c. debit Cash and Machinery; credit Accumulated Depreciation
d. debit Machinery and Accumulated Depreciation; credit Machinery and Cash
Business
1 answer:
77julia77 [94]3 years ago
7 0

Answer:

b. debit Machinery and Accumulated Depreciation; credit Machinery, Cash, and Gain on Disposal

Explanation:

When machinery exchange and its value is greater than the book value so the journal entry is recorded which is shown below:

Machinery A/c Dr XXXXX

Accumulated depreciation A/c Dr XXXXX

            To Machinery A/c XXXXX

            To Cash A/c XXXXX

            To Gain on disposal A/c XXXXX

(Being the exchange is recorded)

Hence the most appropriate option is b.

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Answer:

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Explanation:

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Nolan is applying for a promotion within his company. The formal statement about the job says that he must have a four-year coll
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Job specifications

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Yolanda (41), a freelance photographer, reports a net profit of $50,000 on Schedule C, Profit or Loss from Business. This is her
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The computation of the self-employment tax is given below:

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