The Bronco Corporation exchanged land for equipment. The land had a book value of $124,000 and a fair value of $158,000. Bronco received $14,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

What is the fair value of the equipment?

Fair value

Journal entry worksheet

• Record the exchange of assets.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1