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The following companies exchanged equipment: A Original cost 1,000,0 Accumulated depreciation 380,0 Fair value Cash paid Assuming the transaction is one with commercial substance, and
The following companies exchanged equipment: A Original cost 1,000,0 Accumulated depreciation 380,0 Fair value Cash paid Assuming the transaction is one with commercial substance, and that the cash payment was made to reflect current fair values, determine: (1) Capitalizable cost of machine received by A (2) Capitalizable cost of machine received by B (3) Gain (loss) on the transaction to B (if your answer is a loss, enclose in parentheses) The following companies exchanged equipment: A Original cost 1,000,0 Accumulated depreciation 380,0 Fair value Cash paid Assuming the transaction is one with commercial substance, and that the cash payment was made to reflect current fair values, determine: (1) Capitalizable cost of machine received by A (2) Capitalizable cost of machine received by B (3) Gain (loss) on the transaction to B (if your answer is a loss, enclose in parentheses)
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