United Bank recently traded in office fixtures. Here are the facts: Requirements 1. Record United Banks trade-in

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United Bank recently traded in office fixtures. Here are the facts: 


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Requirements 


1. Record United Bank’s trade-in of old fixtures for new ones. Assume the exchange had commercial substance.


2. Now let’s change one fact. United Bank feels compelled to do business with Furniture Unlimited, a bank customer, even though the bank can get the fixtures elsewhere at a better price. United Bank is aware that the new fixtures’ fair value is only $127,000. Record the trade-in. Assume the exchange had commercial substance.

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