Cullumber Company exchanged equipment that cost $69400 and has accumulated depreciation of $33000 for equipment with a fair value of $48700 and received $14400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is O $6093 gain. O $1300 gain. $15700 gain. $17000 gain.
Cullumber Company exchanged equipment that cost $69400 and has accumulated depreciation of $33000 for equipment with a fair value of $48700 and received $14400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is O $6093 gain. O $1300 gain. $15700 gain. $17000 gain.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...
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![Cullumber Company exchanged equipment that cost $69400 and has accumulated depreciation of $33000 for equipment with a fair
value of $48700 and received $14400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is
O $6093 gain.
O $1300 gain.
$15700 gain.
$17000 gain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f45bebc-2afe-45cc-8e28-eea88d146913%2F9d04c33c-64df-4b1e-980a-76cbd6558cce%2Ff0dop7dh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cullumber Company exchanged equipment that cost $69400 and has accumulated depreciation of $33000 for equipment with a fair
value of $48700 and received $14400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is
O $6093 gain.
O $1300 gain.
$15700 gain.
$17000 gain.
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