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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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Financial Accounting Fundamentals
Authors: John J. Wild
8th Edition
1260728609, 9781260728606
