Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated,...
Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70% depreciated, and could be sold for $4,500. Robertson paid $950 in addition to giving up the machine.
Required:
- Compute the amount at which the land should be recorded and the amount of gain or loss on theexchange.
- Assume, instead, that Robertson exchanged the machine for a new, more efficient machine with a fair valueof $4,700, while still paying $950 as before. Compute the gain or loss that would be recorded on the saleof the old machine by Roberto.
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Robertson Company exchanged a machine
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