alexandergoetz92032 alexandergoetz92032

27-12-2022
Business

Answered

Equipment that cost $391,200 and has accumulated depreciation of $322,800 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance.
A. Calculate the gain to be recognized from the exchange.
B. Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment.

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