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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
1. A printing press priced at $280,000 is acquired by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.
a. Assuming that the trade-in allowance is $80,000, what is the amount of cash given?
b. Assuming that the book value of the press traded in is $78,750, what is the cost of the new press for financial reporting purposes?
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2. Assume the same facts as in Exercise 10-19, except that the book value of the press traded in is $103,250. (a) What is the amount of cash given? (b) What is the cost of the new press for financial reporting purposes?
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