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QUESTION 3 (30 minutes - 12 marks) Synthesize Inc. exchanged machinery with Energize Corp during fiscal 2021. The following data pertains to the exchange: Syn
QUESTION 3 (30 minutes - 12 marks)
Synthesize Inc. exchanged machinery with Energize Corp during fiscal 2021. The following data pertains to the exchange:
Syn machinery | Ener machinery | |
Cost | 500000 | 620000 |
Accumulated depri | 200000 | 500000 |
Fair value | 350000 | 350000 |
Required:
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Assuming the machinery exchange has commercial substance, prepare the required journal entries for the exchange for both Synthesize and Energize.
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Assuming the machinery exchange does not have commercial substance, prepare the required journal entries for the exchange for both Synthesize and Energize.
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