Question: PROBLEM 2 Below are listed data relative to an exchange of equipment by Pensacola Inc. OLD EQUIPMENT CASH PAID Book Value Fair Value CASE A

PROBLEM 2 Below are listed data relative to an exchange ofequipment by Pensacola Inc. OLD EQUIPMENT CASH PAID Book Value Fair Value

PROBLEM 2 Below are listed data relative to an exchange of equipment by Pensacola Inc. OLD EQUIPMENT CASH PAID Book Value Fair Value CASE A $75,000 $80,000 $12,000 CASE B $60,000 $56,000 $10,000 REQUIRED: a. In Case A, the firm would record the new equipment at what amount (5 points): b. What amount of gain or loss would the firm record in the exchange (5 points)? C. In Case B, the firm should record the new equipment at what amount (5 points)

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