Question
lark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Clark Co. Keys Inc. Equipment given up: Equipment (original cost) $54,000 $63,000
lark Co. and Keys Inc. exchange equipment. Information related to this exchange follows.
| Clark Co. | Keys Inc. | |
|---|---|---|
| Equipment given up: | ||
| Equipment (original cost) | $54,000 | $63,000 |
| Accumulated depreciation | 18,000 | 21,600 |
| Fair value | 32,400 | 43,200 |
| Cash exchanged | (10,800) | 10,800 |
Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance.
Please show work for everything
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The Safety Audit Designing Effective Strategies
Authors: Roger Saunders
1st Edition
0273034480, 978-0273034483
