Question
Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received
Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance.
| Old Equipment | Cash | ||||||||||
| Book Value | Fair Value | Received | |||||||||
| Equipment A | $ | 74,000 | $ | 81,500 | $ | 12,500 | |||||
| Equipment B | $ | 61,400 | $ | 54,800 | $ | 10,800 | |||||
For Equipment A, Pensacola would record the new equipment at:
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Auditing And Edp Objective Questions And Explanations
Authors: Irvin N. Gleim, William A. Hillison
5th Edition
0917537521, 978-0917537523
