Accurate Research surveys Canadian opinions. The company s balance sheet reports the following…

Accurate Research surveys Canadian opinions. The company s balance sheet reports the following assets under Property, Plant, and Equipment: Land, Buildings, Office Furniture, Communication Equipment, and Video Equipment. The company has a separate Accumulated Amortization account for each of these assets except land. Assume that the company completed the following transactions during 2017: Feb. 2 Traded in communication equipment with a book value of $26,000 (cost of $202,000) for similar new equipment with a fair market value of $196,000. The seller gave Accurate a trade-in allowance of $36,000 on the old equipment, and the company paid the remainder in cash. This transaction meets the criteria for commercial substance. Jul. 19 Sold a building that had cost $1,050,000 and had accumulated amortization of $740,000 through December 31, 2016. Amortization is computed on a straight-line basis. The building has a 30-year useful life and a residual value of $90,000. Accurate received $150,000 cash and a $1,300,000 note receivable. Oct. 21 Purchased used communication and video equipment from the A.C. Neilsen Company of Canada Ltd. Total cost was $200,000 paid in cash. An independent appraisal valued the communication equipment at $170,000 and the video equipment at $80,000. Dec. 31 Equipment is amortized by the DDB method over a six-year life. Amortization on the equipment purchased on February 2 and on October 21 is recorded separately. Amortization on buildings is compu

 

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