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Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance Old Equipment Book Value Fair
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance Old Equipment Book Value Fair Value Cash Paid $15,000 $ 8,000 $60,000 $35,000 Case A $50,000 Case B $40,000 In Case A, Grand Forks would record the new equipment at: Multiple Choice $50,000. $75,000. $60,000 $65,000 On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common stock in exchange for land. On the date of the transaction, the fair value of the common stock, evidenced by its market price, was $10 per share. The journal entry to record this transaction includes: Multiple Choice Debit: Land, $12,000. Debit: Land, $1,200,000. Credit: Cash, $1,200,000. No entry for this exchange
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