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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 | $ | 74,400 | $ | 80,400 | $ | 12,900 | |||||
| Equipment B | $ | 60,400 | $ | 54,500 | $ | 11,000 | |||||
For Equipment A, Pensacola would record the new equipment at:
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
978-0538473637
