Assigning Value to Assets in Nonmonetary Exchange Lacking Commercial Substance Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $5,600 cash on the exchange. The fair value of the new equipment is $19,60 Original cost of old equipment $14,000 Accumulated depreciation on old equipment $8,400 If the transaction lacks commercial substance, what amount does Mariot assign to the new equipment? Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Amount assigned to new equipment $ 5,600 x

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assigning Value to Assets in Nonmonetary Exchange Lacking Commercial Substance
Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $5,600 cash on the exchange. The fair value of the new equipment is $19,600.
Original cost of old equipment
$14,000
Accumulated depreciation on old equipment $8,400
If the transaction lacks commercial substance, what amount does Mariot assign to the new equipment?
Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
Amount assigned to new equipment $ 5,600 x
Transcribed Image Text:Assigning Value to Assets in Nonmonetary Exchange Lacking Commercial Substance Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $5,600 cash on the exchange. The fair value of the new equipment is $19,600. Original cost of old equipment $14,000 Accumulated depreciation on old equipment $8,400 If the transaction lacks commercial substance, what amount does Mariot assign to the new equipment? Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Amount assigned to new equipment $ 5,600 x
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