The Bronco Corporation exchanged land for equipment. The land had a book value o
ID: 2466198 • Letter: T
Question
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.
Record the exchange of assets.
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.
Explanation / Answer
Solution:
The value of equuipment = Book value of equiment + cash paid
The value of equuipment = $ 124,000 + $ 14,000
The value of equuipment = = $ 138,000
Journal entry to record transaction -
Equiment 138,000 LanD 124,000 Cash 14,000Related Questions
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