question archive Computer-assisted design (CAD) equipment was acquired on March 1, 2017 at a cost of $10,000
Computer-assisted design (CAD) equipment was acquired on March 1, 2017 at a cost of $10,000
Subject:LawPrice: Bought3
Computer-assisted design (CAD) equipment was acquired on March 1, 2017 at a cost of $10,000. However, during 2018 James decided to replace that CAD equipment because it was not performing well enough for the demands of his business. A new more powerful CAD equipment was purchased on March 1, 2018 at a cost of $28,000. The vendor of the new equipment accepted to take the old equipment in exchange. A trade allowance of $6,000 was received for the old equipment (net book value for accounting purposes was $7,500). Class 50 Computer hardware was purchased for general office work on March 15, 2017 at a cost of $5,500. No further additions were made in 2017 or 2018. Note 5: James joined the local golf club to find new customers. The membership cost was $2,500 for the year.
