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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Below is the information relative to an exchange of assets by Bramble Corporation. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid Case I $456000 $522000 $81500 Case II $304000 $272500 $42900 Which of the following would be correct for Bramble to record in Case I? Record Equipment at: Record a gain (loss) of: $456000 $(31500) $537500 $0 $603500 $66000 $537500 $66000
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