Cullumber Manufacturing has equipment that cost $699600 and has accumulated depreciation of $318000. When the equipment has a fair value of $636000, it is exchanged for equipment with a fair value of $508800 and $127200 cash is received. The exchange lacked commercial substance. The new equipment should be recorded as?

Answer rating: 100% (QA)

In the case of an exchange of equipment that lacks commercial substance the new equipment should be ... View the full answer