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

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The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bron

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Answer 1

Answer #1

1. Fair value of equipment = Fair value of land - Cash received = $150,000 – 10,000 = $140,000

2.

General Journal	Debit	Credit
Equipment ($150,000 - $10,000)	$140,000
Cash	$10,000
Land (Book Value)		$120,000
Gain ($150,000 - $120,000)		$30,000

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Answer 2

Answer #2

Fair Value of Equipment = Fair value of land + Cash received = $150,000 + 10,000 = $160,000

source: Connect homework corrected my answer

answered by: Mel

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Answer 3

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