John Inc. exchanged equipment used in its business for similar equipment used by TonyInc. Tonypaid John $6,100 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange.
		John Inc.	TonyInc.
	Equipment (cost)	$ 62,300	$ 70,900
	Accumulated Depreciation	$ 45,600	$ 58,950
	Fair value of the equipment	$ 23,200	$ 19,500
Instructions:
a) Prepare the journal entry for John Inc. To record the transaction if the exchange is deemed to have commercial substance.
Date	Description	Dr	Cr
b) Prepare the journal entry for TonyInc. to record the transaction if the exchange is deemed to have NO commercial substance.
Date	Description	Dr	Cr

Answer rating: 100% (QA)

old aneto t Cashamount Solution when Exchonge is deemed ... View the full answer