Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started