Question
Equipment that cost $413900 and has accumulated depreciation of $314400 is exchanged for equipment with a fair value of $160000 and $40000 cash is received.
Equipment that cost $413900 and has accumulated depreciation of $314400 is exchanged for equipment with a fair value of $160000 and $40000 cash is received. The exchange lacked commercial substance. The gain to be recognized from the exchange is.
Calculate the gain to be recognized from the exhange.
Gain recognized = $
Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment.
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
9th Canadian Edition
978-1119786818, 1119786819
