Question

Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $40,000 cash. The old machine cost $465,000 and had a net book value of $355,000. The old machine had a fair value of $300,000.

Answer 1

Answer:

d.

• Equipment $ 615,000
• Accumulated Depreciation $110,000
• Equipment $465,000
• Cash $40,000

Explanation:

IMPORTANT NOTE: The data of the calculation was obtained from an online research because you didn't post the complete exercise and questions.