Pets Unlimited had a piece of equipment which it purchased 10 years ago. Its cost was $110,000 and it had accumulated depreciation of $75,000.
Record the disposition of the asset beneath the given independent conditions:
1) Pets Unlimited sold the equipment for $25,000.
2) Pets Unlimited rejected the equipment at a cost of $10,000.
3) Pets Unlimited traded in the asset for a new similar asset with a list price of $120,000. Pets Unlimited was given $10,000 as a trade-in allowance and paid cash for the balance.
4) Pets unlimited traded in the asset for a new similar asset with a list price of $200,000. Pets Unlimited was given a trade-in allowance of $50,000 and took signed a note payable for the remainder.