Koch traded machine 1 for machine 2 when the fair market value of both machines was $50,000. koch originally purchased machine 1 for $75,000, and machine 1's adjusted basis was $40,000 at the time of the exchange. machine 2's seller purchased it for $65,000 and machine 2's adjusted basis was $55,000 at the time of the exchange. what is koch's adjusted basis in machine 2 after the exchange?

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?