On 1/1/2016 Micron Co. gave equipment with with a historical cost of $700,000, accumulated depreciation of...

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On 1/1/2016 Micron Co. gave equipment with with a historical cost of $700,000, accumulated depreciation of $100,000 and a fair market value of $1,000,000 to Titan Inc. in exchange for $200,000 cash, and land with a FMV of $800,000. 1. Prepare Micron's journal entry to record the transaction assuming the exchange has commercial substance. 2. Prepare Micron's journal entry to record the transaction, assuming the exchange does not have commercial substance. On 1/1/2016 Micron Co. gave equipment with with a historical cost of $700,000, accumulated depreciation of $100,000 and a fair market value of $1,000,000 to Titan Inc. in exchange for $200,000 cash, and land with a FMV of $800,000. 1. Prepare Micron's journal entry to record the transaction assuming the exchange has commercial substance. 2. Prepare Micron's journal entry to record the transaction, assuming the exchange does not have commercial substance.

Answer rating: 100% (QA)

Answer1 The Transaction has Commercial Substance Account Titles and Explanation ... View the full answer