Question
In 2017, Company A and Company B entered into an agreement to exchange machinery.Per the agreement, Company A provided a forklift to Company B in
In 2017, Company A and Company B entered into an agreement to exchange machinery.Per the agreement, Company A provided a forklift to Company B in exchange for Company B's tractor.To complete the exchange, Company B paid Company A $15,000 cash.Each company reported the machines as fixed assets on their respective balance sheets.Information about the machines for each company is included in the tables below:
Company A's forklift
Company B's tractor
Fair Market Value
$150,000
?
Original Cost
$225,000
$190,000
Accumulated Depreciation
$55,000
$70,000
A)Determine the fair market value of Company B's tractor on the date of the exchange.
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