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On 12/31/21, ABC Corporation exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $20,000 (original cost
On 12/31/21, ABC Corporation exchanged equipment for two pickup trucks. The book value and fair value of the equipment given | ||||||||
up were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. Assume ABC paid $10,000 | ||||||||
in cash and the exchange has commercial substance. Prepare the approriate journal entry to reflect the nonmonetary exchange. |
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