The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a

Question:

The Bronco 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.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...