3. Below are listed data relative to an exchange of equipment by Tail and Tales, Inc., Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid Case A $75,000 $80,000 $12,000 Case B $60,000 $56,000 $10,000 For Equipment A, Tail and Tales would record the new equipment at
New equipment should be recorded at
= Cash + Book value of old equipment + Gain
= 12,000 + 75,000 + (80,000-75,000)
= 92,000
Comment if you face any issues
3. Below are listed data relative to an exchange of equipment by Tail and Tales, Inc.,...
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