Transcribed Image Text: FAlpQLSd8PvgC4zihRrNM14FZm52PFOYZM rormkesponse On April 1, 2018, Magnum Company purchased a delivery equipment for $88,000, with an expected useful

Excerpt
value of $32,000 and $60,000 cash was paid. The company uses the straight line method of depreciation. The cost of the new equipment is: $88,000 $148,000 $92,000 $32,000 O None of the above Zara corporation decided to exchange its old macne that costs $100.p00 with

Transcribed Image Text: FAlpQLSd8PvgC4zihRrNM14FZm52PFOYZM
rormkesponse
On April 1, 2018, Magnum Company purchased a delivery equipment for $88,000,
with an expected useful life of 4 years and an estimated salvage value of $8,000.
On January 1, 2021, the company decided to exchange its old delivery equipment
for a similar new one. At the time of exchange, the old delivery equipment has a
fair market value of $32,000 and $60,000 cash was paid. The company uses the
straight line method of depreciation. The cost of the new equipment is:
$88,000
$148,000
$92,000
$32,000
O None of the above
Zara corporation decided to exchange its old macne that costs $100.p00 with

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