Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new plant assets follow: Old Plant Asset Original cost $10,000 Accumulated depreciation of 7,000 Fair value 2,000 New Plant Asset List price 13,000 Robertson paid $10,500 cash in the trade. What should be the cost of the new plant asset for financial accounting purposes? a. $12,000 b. $12,500 c. $13,500 d. $13,00
Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new plant assets follow: Old Plant Asset Original cost $10,000 Accumulated depreciation of 7,000 Fair value 2,000 New Plant Asset List price 13,000 Robertson paid $10,500 cash in the trade. What should be the cost of the new plant asset for financial accounting purposes? a. $12,000 b. $12,500 c. $13,500 d. $13,00
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Robertson traded in an old plant asset for a newer model that would be more productive and efficient. Data relative to the old and new plant assets follow:
Old Plant Asset
Original cost $10,000
Fair value 2,000
New Plant Asset
List price 13,000
Robertson paid $10,500 cash in the trade. What should be the cost of the new plant asset for financial accounting purposes?
a. $12,000
b. $12,500
c. $13,500
d. $13,000
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