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Kerry, Inc., exchanged land and cash of 8,000 for equipment. The land had a book vaule of $55,000 and a fair value of $60,000. Required:

Kerry, Inc., exchanged land and cash of 8,000 for equipment. The land had a book vaule of $55,000 and a fair value of $60,000.

Required: Prepare the journal entry to record the excange. Assume the exchange has commercial substance.

My answer is :

Equipment 68,000

Gain: 5,000

Cash: 8,000

Land: 55,000

Is this Correct. If not please help me undersatnd why not.

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