Question
Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000,
Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $9,000. The truck has a cost of $12,000 and a book value of $8,000 on Harmes books.
Required:
| Prepare journal entries for Goodman and Harmes to record the exchange. |
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Government Auditing Standards
Authors: U.S. Government Accountability Office
1st Edition
B0C9S8NVST, 979-8851147746
