E-20 Partial year depreciation and sale of an asset, p. 538 E-18 Selecting the best depreciation method, p. 538 E-19 Changing an asset’s useful life, p. 538 E-15 Distinguishing capital expenditures from expenses, p. 537 E-21 Trade-in asset – two situations on Page 539, BUT use the altered version below:
Peace Bank recently traded in office fixtures. Here are the facts:
Cost of old fixtures is $99,000
Related accumulated depreciation at the time of the trade is $73,000
New fixtures had a value of $131,000. Peace Bank paid $105,000 in addition to the old fixtures
Requirements:
1 and 2 are the same as what is shown in the book, but I added a third requirement: 3. Record Peace Bank’s trade-in of the old fixtures for new ones if the market value of the new fixtures is $135,000
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