Chapter 9, Problem 9.24EX

(A)

To determine

Exchange of fixed assets: It refers to the purchase of new fixed assets in exchange of old fixed assets. Fixed Assets refer to the long-term assets having a useful life of more than a year which is, acquired by a company to be used in its business activities, for generating revenue. Examples of fixed assets are Plant, Property, Equipment, Land, and Buildings.

the amount of cash given.

(B)

To determine

the gain or (loss) on the exchange of equipment.