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Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value

Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Required: 1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. 2. Prepare the journal entry to record the exchange. Assume the exchange lacks commercial substance. Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Required:

1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance.

2. Prepare the journal entry to record the exchange. Assume the exchange lacks commercial substance.

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