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please a want answer Rahar Corporation follows a policy of a 10% depreciation charge per year on all machinery and a depreciation charge per year
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Rahar Corporation follows a policy of a 10% depreciation charge per year on all machinery and a depreciation charge per year on building. The following transactions occurred in 2021: June 30, 2021-Negotiations which began in 2020 were completed and a warehouse purchased 1/1/02 (depreciation has been properly charged through December 31, 2020 at a cost of $1,600.000 with a fair market value of $1,000,000 was exchanged for a second warehouse which also had a fair market value of $1,000,000. The exchange had no commercial substance. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value. September 30, 2011-Machinery with a cost of $120,000 and accumulated depreciation through January 1 of $90,000 was exchanged with $75,000 cash for a parcel of land with a fair market value of $230,000. Instructions: Prepare all appropriate journal entries for Rahaf Corporation for the above dates Step by Step Solution
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