China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a delivery truck. The

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China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a delivery truck. The fair value and book value of the delivery truck given were $ 31,000 and $ 32,600 (original cost of $ 37,000 less accumulated depreciation of $ 4,400), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $ 9,000 in cash from China Inn. At what amount did Midwest Chicken record the equipment? How much gain or loss did Midwest Chicken recognize on the exchange?

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Financial Accounting

ISBN: 978-0078025549

3rd edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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