Question
Construction Company exchanged a piece of equipment with another company. Cost of equipment 850,000 Accumulated depreciation 255,000 Cash received 89,300 Fair value of the equipment
Construction Company exchanged a piece of equipment with another company.
| Cost of equipment | 850,000 |
| Accumulated depreciation | 255,000 |
| Cash received | 89,300 |
| Fair value of the equipment | 803,000 |
| Total fair value | 893,000 |
Assuming that the exchange lacks commercial substance, Construction Company would record the new equipment value at:
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Auditing And Assurance Services Plus Pearson MyLab Accounting With Pearson EText
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
17th Global Edition
1292312106, 978-1292312101
