Part b: assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable, prepare the general journal entry to record this transaction.

Wild horse Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $11,520 plus tradein, f.o.b. factory. Wildhorse Inc. paid $11,520 cash and traded in used equipment. The used equipment had originally cost $89,280; it had a book value of $60,480 and a secondhand fair value of $68,832, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $1,584. (a) V Your answer is correct. Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. if no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Equipment 81936 Accumulated DepreciationEquipment 28800 Gain on Disposal of Equipment 8352 Equipment 89280 Cash 13104 lb) Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable, prepare the general journal entry to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) | | a : Account Titles and Explanation Debit Credit