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9. The Chase Company exchanged equipment costing P240,000 with accumulated depreciation of P90,000 for equipment owned by Jones Corporation. The Jones equipment cost P330,000 with
9. The Chase Company exchanged equipment costing P240,000 with accumulated depreciation of P90,000 for equipment owned by Jones Corporation. The Jones equipment cost P330,000 with accumulated depreciation of P120,000. The fair value of both pieces of equipment was P300,000.
Provide the necessary entries to record the transaction on both companies' books assuming:
(1)
The exchange lacks commercial substance.
(2)
The exchange has commercial substance.
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Horngrens Financial And Managerial Accounting The Managerial Chapters And The Financial Chapters Plus Pearson Mylab Accounting With Pearson Global Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
6th Global Edition
1292270756, 978-1292270753
