P11.8B: Jivraj and Juma are accountants at Desktop Computers. Desktop Computers has not adopted the revaluation model for accounting for its property, plant, and equipment. The accountants disagree over the following transactions that occurred during the fiscal year ended December 31, 2021:
Identify elements, assumptions, constraints, and recognition and measurement criteria.
Desktop purchased equipment for $60,000 at a going-out-of-business sale. The equipment was worth $75,000. Jivraj believes that the following entry should be made:
Equipment
75,000
Cash
60,000
Gain on...