Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. area richards, inc. exchanged a piece of equipment

Area Richards, Inc. exchanged a piece of equipment with an original cost of $82,000, accumulated...

90.2K

Verified Solution

Question

Accounting

Area

Richards, Inc. exchanged a piece of equipment with an original cost of $82,000, accumulated depreciation to date of $40,000, and a fair value of $46,000 for a similar piece of equipment. Cash flows are not expected to change significantly. The newly acquired equipment had a book value of $40,000 and a fair market value of $41,000. At what value should Richard record the newly-acquired equipment?

$46,000

$40,000

$42,000

$41,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Want a SEIRS model with stochastic transmission project proposal under the following headings for a MSc...

Basic Math
1.2K views

In the Blade Runner universe, replicants are bioengineered androids that are virtually identical to humans. The “Voight-Kampff”...

Biology
1.2K views

Phagocytosis is a process by which lymphocytes engulf and kill bacteria a mechanism of defense...

Physics
1.2K views

A polaroid is placed in the path of an incoming unpolarised light of intensity lo...

Geometry
1.2K views

The sun of galaxy X has a diameter of about 736 000 mi with a...

Calculus
1.2K views

From a pack of 52 cards two cards are drawn together at random What is...

Accounting
1.2K views

668 Chapter 12 Multivational Accounting, Issues in Financial Reporting and Translation of Foreign Entity Statements...

Accounting
1.2K views

(5) Fred is the sole shareholder of an S corporation in Fort Deposit, Alabama. At...

Accounting
1.2K views

On January 1 2010 harris pays 300,000 for 6,000 shares of horton, representing a 25%...

Accounting
1.2K views

Tyler, a single taxpayer, generates a net operating loss of $12,000 in 2017. He also...

Accounting
1.2K views

Ratchet Manufacturing anticipates total sales for August, September, and October of $250,000,$260,000, and $270,500 respectively....

Finance
1.2K views

The following payoff matrix describes a variation of the repeated Golden Ball game introduced in...