Financial Accounting

Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Long Lived Assets

Exchange for Similar Assets

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concept

Asset Exchanges

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Problem

ABC Company decided to exchange its old printer for a new printer. The old printer was purchased for $1,600 and had accumulated depreciation of $1,200. The seller of the new printer offered $300 as a trade-in discount for the old printer. The new printer had a price of $1,800. This transaction has commercial substance. The journal entry to record this exchange would include: