Question
Maxwell Company transferred Equipment to Green Company in exchange for new machinery just purchased by Green company. Assume that this transaction has commercial substance for
Maxwell Company transferred Equipment to Green Company in exchange for new machinery just purchased by Green company. Assume that this transaction has commercial substance for both companys Maxwell Company equipment transferred to Maize and Blue Original Cost $25,000 Accum. Deprec. 15,000 Cash Received 5,000 Fair Market Value of Truck Given 23,000 Green Transfer of machine to maxwell Original Cost 25,000 Accum. Deprec. 9,000 Cash Given 5,000 Fair Market Value of Truck Given 18,000 The journal entry on Maxwell Companies books for the acquisition of this machine would be:
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