Question
Madison & Gallatin Companies exchanged assets during the year. Assume that the following cases are independent and rely on the following data. Madison Co. Gallatin
Madison & Gallatin Companies exchanged assets during the year. Assume that the following cases are independent and rely on the following data.
Madison Co. Gallatin Co.
Equipment (cost) $3,000,000 $2,700,000
Accumulated depreciation 1,500,000 1,600,000
Fair value of equipment 1,200,000
Cash paid 600,000
Cash received 600,000
A. Assuming the exchange has commercial substance, record the exchange for Madison.
Madisons Books:
Accounts Debit Credit
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B. Assume the exchange does not have commercial substance, record the exchange for Gallatin.
Gallatins Books:
Accounts Debit Credit
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Managing IoT Systems For Institutions And Cities Internal Audit And IT Audit
Authors: Chuck Benson
1st Edition
1138590487, 978-1138590489
