Question
3. ABC Company had equipment that cost $660,000 with accumulated depreciation of $360,000. The equipment was exchanged for equipment with a fair value of $480,000.
3.
ABC Company had equipment that cost $660,000 with accumulated depreciation of $360,000. The equipment was exchanged for equipment with a fair value of $480,000. ABC Company also paid $120,000 in cash. The exchange lacked commercial substance. The new equipment should be recorded at
| $480,000 | ||
| $420,000 | ||
| $240,000 | ||
| $360,000 |
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
978-1259194078
