Question
Samuel Company exchanged land and cash of $6,500 for equipment.The land had a book value of $45,000 and a fair value of $34,000. Required: (a)
Samuel Company exchanged land and cash of $6,500 for equipment.The land had a book value of $45,000 and a fair value of $34,000.
Required:
(a) Prepare the journal entry to record the exchange, assuming this transaction has commercial
substance.
(b) Prepare the journal entry to record the exchange, assuming this transaction lacks commercial
substance.
Please reply with explanation.
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
4th edition
978-0134125053, 9780134114781, 134125053, 134114787, 978-0134436111
