Question
The Bronco Corporation exchanged land for equipment. The land had a book value of $132,000 and a fair value of $174,000. Bronco paid the owner
The Bronco Corporation exchanged land for equipment. The land had a book value of $132,000 and a fair value of $174,000. Bronco paid the owner of the equipment $22,000 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. The Bronco Corporation exchanged land for equipment. The land had a book value of $132,000 and a fair value of $174,000. Bronco paid the owner of the equipment $22,000 to complete the exchange which has commercial substance.
Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
What is the fair value of the equipment?
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Journal entry worksheet
- Record the entry of exchange of assets.
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Note: Enter debits before credits.
Event General Journal Debit Credit 1
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Financial Accounting
Authors: Patricia A. Libby, Daniel Short, George Kanaan, Maureen Libby Gowing, Robert Libby
4th Canadian Edition
0070001499, 9780070001497
