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Honeycutt Co. recently engaged in an exchange of equipment with ABC Co. The following information pertains to the equipment each company owned immediately before the
Honeycutt Co. recently engaged in an exchange of equipment with ABC Co. The following information pertains to the equipment each company owned immediately before the exchange:
|
| Honeycutt Co. | ABC Co. |
| Equipment cost | $431,675 | $263,140 |
| Accumulated depreciation | 147,920 | 84,510 |
| Fair value | 269,360 | 218,855 |
In addition, Honeycutt received $50,505 cash from ABC.
REQUIRED: Give the entry Honeycutt Co. must make to account for this exchange. Assume the exchange has commercial substance.
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