Question
91. Nonmonetary exchange. Equipment that cost $240,000 and has accumulated depreciation of $189,000 is exchanged for equipment with a fair value of $96,000 and $24,000
91. Nonmonetary exchange.
Equipment that cost $240,000 and has accumulated depreciation of $189,000 is exchanged for equipment with a fair value of $96,000 and $24,000 cash is received. The exchange lacked commercial substance.
Instructions
(a) Show the calculation of the gain to be recognized from the exchange.
(b) Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment.
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Financial And Managerial Accounting El Camino College Edition
Authors: Haka Bettner Carcello Williams
1st Edition
0077838246, 978-0077838249
