Business, 15.02.2021 20:20 marahkotelman

Rogers Co. had a sheet metal cutter that cost $113,000 on January 5, 2016. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Rogers also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. Required:
a. Show the calculation of the amount of the gain or loss to be recognized by Rogers Co.
b. Prepare all entries that are necessary on April 3, 2018. Show a check of the amount recorded for the new cutter.

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Rogers Co. had a sheet metal cutter that cost $113,000 on January 5, 2016. This old cutter had an es...

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