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3 October, 13:32

Larkspur, Inc. exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $36,900 (cost $66,400 less accumulated depreciation $29,500). Its fair value is $45,500, and cash of $5,300 is paid. Prepare the entry to record the exchange.

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  1. 3 October, 13:57
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    Account Credit Debit

    Equipment (new) $50,800

    Accumulated Depreciation $29,500

    Equipment (old) $66,400

    Gain on disposal of asset $8,600

    Cash $5,300
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