On april 1 2013 when the machine has a fair value of 82500, Ask an Expert

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A machine cost $360,000, has annual depreciation of $60,000, and has accumulated depreciation of $270,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $82,500, it is exchanged for a machine with a fair value of $405,000 and the proper amount of cash is paid. The exchange lacked commercial substance. The new machine should be recorded at:

A) $397,500.

B) $367,500.

C) $405,000.

D) $322,500.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M968098

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