Bella company entered into an exchange agreement of exchanging its equipment for two pickup vehicles. The equipment has original cost- of $32,000 and accumulated depreciation of $7,000. The fair value of equipment was $22,000 and Bella also paid cash of $7,200 for the exchange. At what amount will pick up vehicles be recorded assuming that the exchange has commercial substance. $25,000 $32,200 $22,000 $29.200
Bella company entered into an exchange agreement of exchanging its equipment for two pickup vehicles. The equipment has original cost- of $32,000 and accumulated depreciation of $7,000. The fair value of equipment was $22,000 and Bella also paid cash of $7,200 for the exchange. At what amount will pick up vehicles be recorded assuming that the exchange has commercial substance. $25,000 $32,200 $22,000 $29.200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bella company entered into
an exchange agreement of
exchanging its equipment for
two pickup vehicles. The
equipment has original cost-
of $32,000 and accumulated
depreciation of $7,000. The
fair value of equipment was
$22,000 and Bella also paid
cash of $7,200 for the
exchange.
At what amount will pick up
vehicles be recorded
assuming that the exchange
has commercial substance.
$25,000
$32,200
$22,000
$29.200
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