On October 15th 2021 Company A trades a piece of equipment with company B for a piece of similar equipment. The equipment from Company A had a historical cost of $85k and an accumulated depreciation of $40k. Company B recorded their equipment with a historical cost of $90k and an accumulated depreciation of $35k.

a) A 3rd party inspection of Company B's equipment revealed that the fair market value of the equipment was $40k. Record the JE for Company A. Record the Journal Entry.

b) A 3rd party inspection of Company B's equipment determined that the fair market value of the equipment was $51k. Record Company B's Journal Enry assuming that question a never happened.

Answer rating: 100% (QA)

a Journal Entry for Company A On October 15 2021 1 Equipment Company B Fair Value Adjustment Debit E... View the full answer