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Problem 2 - Nonmonetary exchange ( 2 0 Points ) Belize Electricity Limited ( BEL ) exchanged machinery with an appraised value of $ 4
Problem Nonmonetary exchange Points
Belize Electricity Limited BEL exchanged machinery with an appraised value of $ a recorded cost of $ and accumulated depreciation of $ with Belize Telemedia Limited BTL for machinery BTL owns. The machinery has an appraised value of $ a recorded cost of $ and accumulated depreciation of $ BTL also gave BEL $ in the exchange. Assume depreciation has already been updated.
Instructions
a Prepare the entries on both companies' books assuming that the exchange had commercial substance. Round all computations to the nearest dollar. Points
b Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. Round all computations to the nearest dollar. Points
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