Assume the same information as BE9.15, except that the fair value of the old delivery equipment is
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Assume the same information as BE9.15, except that the fair value of the old delivery equipment is $33,000. Prepare the entry to record the exchange.
Data from BE9.15
Olathe Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,000 (cost $61,000 less accumulated depreciation $30,000). Its fair value is $24,000, and cash of $5,000 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance.
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1119392132
3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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