Question: On January 1 , 2019 ,MK Co exchanged Building which has a fair value of $6,400,000 cost of $10,120,000 and accumulated depreciation of 4800,000for Equipment

On January 1 , 2019 ,MK Co exchanged Building which has a fair value of $6,400,000 cost of $10,120,000 and accumulated depreciation of 4800,000for Equipment belonging to ABC Co. Equipment has a fair value of $6,016,000, a cost of U12040,000 and accumulated depreciation of $ 6,336,000. In addition, $384,000 of cash was also paid by ABC to prepare the entries on both companies' books ass assigning had commercial substance January 1, 2015 8 the exchange on.

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