Question
The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a fair value of $168,000. Bronco paid the owner
The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a fair value of $168,000. Bronco paid the owner of the equipment $19,000 to complete the exchange which has commercial substance.
What is the fair value of the equipment?
Prepare the journal entry to record the exchange.
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Managerial Accounting
Authors: Peter C. Garrison, Ray H., Noreen, Eric W., Brewer
12th Edition
0071274227, 978-0071274227
