Question
Apple and Banana agree to exchange equipment. Banana will also give Apple $30,000 in cash. (This exchange lacks commercial substance). Cost Acc. Dep. Fair Value
Apple and Banana agree to exchange equipment. Banana will also give Apple $30,000 in cash. (This exchange lacks commercial substance).
| Cost | Acc. Dep. | Fair Value | |
| Apple Equipment | 300,000 | 120,000 | 200,000 |
| Banana Equipment | 270,000 | 50,000 | 170,000 |
Part A: Using the information in the table above, what is the value of the NEW equipment recorded in the journal entry by APPLE?
Also, what is the recorded gain (for APPLE)?
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso
6th Canadian Edition
1119731828, 9781119731825
