Prepare the journal entry for the following exchange with NO commercial substance. You MUST show your computation of the gain recognized. Assume accumulated depreciation has been updated. Old equipment cost = 35,000; Old equipment accumulated depreciation = 7,000; Old equipment fair value = 30,000; Cash received = 3,000; New equipment was received.

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To prepare the journal entry for the exchange of old equipment with no commercial substance we need ... View the full answer