Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1. Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000. 2. Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000. 3. Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000. 4. Acquired a car by giving up a truck that had originally cost $20,000, has a book value of $15,000, and has a “blue book” value of $16,800. In addition, the company received $1,000 cash. Required: Prepare Bremer’s journal entry for each exchange. Assume all exchanges were determined to have commercial substance.
P10-5 Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019:
1. Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000.
2. Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000.
3. Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000.
4. Acquired a car by giving up a truck that had originally cost $20,000, has a book value of $15,000, and has a “blue book” value of $16,800. In addition, the company received $1,000 cash.
Required:
Prepare Bremer’s
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