8. Long Lived Assets
Exchange for Similar Assets
Multiple Choice
Multiple ChoiceABC Company decided to exchange its old printer for a new printer. The old printer was purchased for $1,600 and had accumulated depreciation of $1,200. The seller of the new printer offered $300 as a trade-in discount for the old printer. The new printer had a price of $1,800. This transaction has commercial substance. The journal entry to record this exchange would include:
A
Credit to Cash for $1,800
B
Credit to Equipment for $400
C
Debit to Cash for $300
D
Debit to Accumulated Depreciation for $1,200
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