Question
10. Gentle Ben's Inc. purchased a machine 5 years ago at a cost of $1,500,000. The machine has accumulated depreciation of $750,000 and a
10. Gentle Ben's Inc. purchased a machine 5 years ago at a cost of $1,500,000. The machine has accumulated depreciation of $750,000 and a fair value of $800,000. Marco Manufacturing has a similar machine with an original cost of $1,400,000 and accumulated depreciation of $700,000 and fair value of $750,000. The two companies exchange equipment and Gentle Ben's also receives $50,000 in cash from Marco. Assume that the transaction lacked commercial substance, prepare the journal entries for Gentle Ben's.
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