Question
Hawk Company traded in a piece of equipment for another piece of equipment, as follows: Asset traded in New Asset (Asset Received) Cost $400,000 Fair
Hawk Company traded in a piece of equipment for another piece of equipment, as follows:
Asset traded in New Asset (Asset Received)
Cost $400,000 Fair Market Value $460,000
A/D $350,000
Book Value $ 50,000
Fair Market Value $160,000
Cash Paid, given up $300,000
The exchange HAS commercial substance. Hawk should record the NEW ASSET at what amount?
| 460,000 | ||
| 350,000 | ||
| 300,000 | ||
| 160,000
|
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Coping With Financial Accounting 1 For Senior Secondary Schools And Undergraduate Studies
Authors: Festus Chukwunwendu Akpotohwo ,Stella Alfred-Jaja Wellington-Igonibo ,Cletus Ogeibiri
1st Edition
3659611034, 978-3659611032
