Wildhorse Company exchanged equipment that cost $66700 and has accumulated depreciation of $32400 for equipment with a fair value of $50600 and received $13400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is O $18200 gain. O $6218 gain. O $23000 gain. O $4800 gain.
Wildhorse Company exchanged equipment that cost $66700 and has accumulated depreciation of $32400 for equipment with a fair value of $50600 and received $13400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is O $18200 gain. O $6218 gain. O $23000 gain. O $4800 gain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Company exchanged equipment that cost $66700 and has accumulated depreciation of $32400 for equipment with a fair
value of $50600 and received $13400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange
is
O $18200 gain.
O $6218 gain.
O $23000 gain.
O $4800 gain.
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