I need correct option this question general accounting Wesley Company exchanged equipment and cash of $8,200 for similar equipment. The bookvalue of the equipment was $62,000 and the fair value was $79,000. Assuming the exchange hascommercial substance, what amount should Wesley record for the new equipment and what gainor loss should be recognized?a. Equipment: $70,200; Gain: $17,000b. Equipment: $79,000; Gain: $0c. Equipment: $70,200; Gain: $0d. Equipment: $87,200; Gain: $17,000

Step 1: Define Commercial Substance in ExchangesA nonmonetary exchange has commercial substance if…

Answered: Wesley Company exchanged equipment and…

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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