The Shubert Theatre and the Broadway Theatre entered into a transaction on December 16, 20x5 to exchange some of their lighting equipment. On December 16, 20x5, the information for each theatre is as follows: Shubert Broadway Original cost 800,000 640,000 Accumulated depreciation 560,000 260,000 Fair market value 400,000 350,000 Cash paid by Broadway to Shubert- 50,000 Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance.
The Shubert Theatre and the Broadway Theatre entered into a transaction on December 16, 20x5 to exchange some of their lighting equipment. On December 16, 20x5, the information for each theatre is as follows: Shubert Broadway Original cost 800,000 640,000 Accumulated depreciation 560,000 260,000 Fair market value 400,000 350,000 Cash paid by Broadway to Shubert- 50,000 Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The Shubert Theatre and the Broadway Theatre entered into a transaction on
December 16, 20x5 to exchange some of their lighting equipment. On
December 16, 20x5, the information for each theatre is as follows:
Shubert
Broadway
Original cost
800,000
640,000
Accumulated depreciation
560,000
260,000
Fair market value
400,000
350,000
Cash paid by Broadway to Shubert -
50,000
Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5,
assuming that the transaction is considered an exchange that has commercial substance.
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