he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair alue of $154,000. Bronco paid the owner of the equipment $12,000 to complete the exchange which has ommercial substance. equired: What is the fair value of the equipment? Prepare the journal entry to record the exchange. Complete this question by entering your answers in the tabs below.
he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair alue of $154,000. Bronco paid the owner of the equipment $12,000 to complete the exchange which has ommercial substance. equired: What is the fair value of the equipment? Prepare the journal entry to record the exchange. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair
alue of $154,000. Bronco paid the owner of the equipment $12,000 to complete the exchange which has
ommercial substance.
Required:
.What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal
the first account field.)
View transaction list
View journal entry worksheet
No
Transaction
General Journal
Debit
Credit
1
1
Equipment - new
3,400
Cash
12,000
Gain on exchange of assets
< Required 1
Required 2 >
![Exercise 10-16 (Algo) Nonmonetary exchange [LO10-6]
The Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair
value of $154,000. Bronco paid the owner of the equipment $12,000 to complete the exchange which has
commercial substance.
Required:
1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What is the fair value of the equipment?
Fair value
$
3,400
K Required
Required 2 >
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Transcribed Image Text:Exercise 10-16 (Algo) Nonmonetary exchange [LO10-6]
The Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair
value of $154,000. Bronco paid the owner of the equipment $12,000 to complete the exchange which has
commercial substance.
Required:
1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What is the fair value of the equipment?
Fair value
$
3,400
K Required
Required 2 >
%24
Expert Solution
Step 1
Introduction:
Journal:
Recording of a business transactions in a chronological order.
First step in the preparation of final accounts is recording journals.
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