Business
Business, 30.11.2019 05:31, krystinayagel013

Cannondale company purchased an electric wax melter on april 30, 2020, by trading in its old gas model and paying the balance in cash. the following data relate to the purchase. list price of new melter $15,800 cash paid 10,000 cost of old melter (5-year life, $700 salvage value) 11,200 accumulated depreciation-old melter (straight-line) 6,300 secondhand fair value of old melter 5,200 prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. cannondale’s fiscal year ends on december 31, and depreciation has been recorded through december 31, 2019.

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