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Robertson traded in an old plant asset for a newer model that would be more productive...

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?

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Answer #1
original cost of old machine 10000
accumulated depreciation 7000
fair value of machine 2000
loss on exchange 1000
cost of new machine 13000
loss on exchange 1000
cost of new machine for accounting purpose 12000
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