Question: Assume the same facts as in E 10-16 except that Bronco received $10,000 from the owner of the equipment to complete the exchange. Data from

Assume the same facts as in E 10-16 except that Bronco received $10,000 from the owner of the equipment to complete the exchange.

Data from in E 10-16

The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to complete the exchange which has commercial substance.

Required:
1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.

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