Question
Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a fair value of $48,000 and $12,000 cash is received.
Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a fair value of $48,000 and $12,000 cash is received. The exchange lacked commercial substance. The new equipment should be recorded at:
a. $48,000.
b. $36,000.
c. $30,000.
*d. $28,800.
Answer is d but please show work
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P7 Advanced Audit And Assurance Q And A 2013
Authors: ACCA Simplified
1st Edition
1492716626, 978-1492716624
