Alaqua Co. records depreciation annually (at each fiscal year-end of Nov. 30), or earlier if an asset is disposed of. Its accounting policies include taking a full year’s depreciation on equipment that is used throughout the year, and a half-year’s depreciation for equipment that is acquired or disposed of during the year. All existing equipment is depreciated over an estimated useful life of 10 years using the straight-line method and with no residual value. The following events and transactions occurred during the fiscal year ended Nov.30, 2020 (assume all amounts are material): Mar. 13 Traded in old machine vision inspection equipment purchased in February 2013 for $112,000 in exchange for a new, current-technology version with a fair value of $90,000. The new equipment was faster and more accurate than the old and would result in manufacturing cost-savings for Alaqua Co. (thus it had ‘commercial substance’). 
In addition to the trade-in, Alaqua Co. paid $46,000 to the equipment vendor, $1,500 for shipping