ANSWERS TO QUESTIONS
June 1, 2005 Purchase $31,000 Freight 200 Installation 500 Total cost $31,700 Book value, old machine, June 1, 2009: [$33,680 – $2,920 – ($3,140 X 3)] = $21,340 Fair market value 20,000 Loss on exchange 1,340 Cost of removal 75 Total loss $ 1,415 ................
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