The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange which has commercial substance. Required: 1. What is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thils 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 entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new 214,000 Land - new 138,000 Cash 28,000 Gain on exchange of assets 48,000 < Required 1 Required a>

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of
$186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange whlch has commercial
substance.
Required:
1. What Is the falr value of the equipment?
2. Prepere the Journal entry to record the exchange.
Answer Is complete but not entirely correct.
Complete thls 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 entry
required" in the first account field.)
No
Transaction
General Journal
Debit
Credit
Equipment - new
Land - new
1
214,000
138,000
Cash
28,000
Gain on exchange of assets
48,000
< Required 1
Required a >
Transcribed Image Text:The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange whlch has commercial substance. Required: 1. What Is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thls 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 entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new Land - new 1 214,000 138,000 Cash 28,000 Gain on exchange of assets 48,000 < Required 1 Required a >
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