Village Bank recently traded in office fixtures. Here are thefacts:

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Requirement 1. Record Village Bank's trade-in of old fixtures for new ones. Assume the exchange had commercial substance.

Let's begin by calculating the gain or loss on the exchange of fixtures. (Enter "0" for items with a zerovalue.)

Market value of assets received

Less:

Book value of asset exchanged

Cash paid

Gain or (Loss)

Data Table

Old fixture: New fixtures:

cost, $95,000 cash paid $103,000

Accumulated depreciation $74,000

Market value $124,000