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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 >
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 > %24
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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