Question
Equipment that cost $66,000 and has accumulated depreciation of $52,250 is exchanged for equipment with a fair value of $26,400 and $6,600 cash is received.
Equipment that cost $66,000 and has accumulated depreciation of $52,250 is exchanged for equipment with a fair value of $26,400 and $6,600 cash is received. The exchange lacked commercial substance.
- How much is the gain or loss realized on the exchange (indicate gain or loss)
- How much is the gain or loss recognized on the exchange (indicate gain or loss)
- Prepare the journal entry to record the exchange
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
