1.
Concept Introduction:
Disposal of plant assets: Disposal of plant asset occurs in three basic ways that are discarding, selling, and exchanging. When property plant and equipment are exchanged, it is first required to ascertain if the exchange has commercial substance, and if there is commercial substance, gain or loss on the exchange must be recognized.
The entry for exchange assuming C Co paid $30,000 cash and the exchange has commercial substance.
2.
Concept Introduction:
Disposal of plant assets: Disposal of plant asset occurs in three basic ways that are discarding, selling, and exchanging. When property plant and equipment are exchanged, it is first required to ascertain if the exchange has commercial substance, and if there is commercial substance, gain or loss on the exchange must be recognized.
The entry for exchange assuming C Co paid $30,000 cash and the exchange has commercial substance.
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FIN MANAG. ACCT. (LL) W/CONNECT (1TERM)
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