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Question 1 Bell Ltd. exchanged a piece of equipment for land and paid $10,000 cash. The equipment was acquired at a cost of $420,000 in
Question 1 Bell Ltd. exchanged a piece of equipment for land and paid $10,000 cash. The equipment was acquired at a cost of $420,000 in previous years. At the date of exchange, the equipment has a carrying amount (net book value) of $295,000 and the land has a fair market value of $320,000. Required: Provide the entry that Bell Ltd. should record for this transaction.
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