Example (E9-20 modified) Tony LoBianco Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Arruza Company. The following information pertains to the exchange. LoBianco Arruza Equipment (cost) Accumulated Depreciation Fair value of equipment Cash given up What is the Gain/Loss for these two companies on this exchange? $28,000 10,000 12,500 3,000 $28,000 19,000 15,500 Prepare journal entries for both companies assuming that the exchange has commercial substance.
Example (E9-20 modified) Tony LoBianco Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Arruza Company. The following information pertains to the exchange. LoBianco Arruza Equipment (cost) Accumulated Depreciation Fair value of equipment Cash given up What is the Gain/Loss for these two companies on this exchange? $28,000 10,000 12,500 3,000 $28,000 19,000 15,500 Prepare journal entries for both companies assuming that the exchange has commercial substance.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 11PA: Record journal entries for the following transactions of Telesco Enterprises.
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