The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of$186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange whlch has commercialsubstance.Required:1. What Is the falr value of the equipment?2. Prepere the Journal entry to record the exchange.Answer Is complete but not entirely correct.Complete thls question by entering your answers In the tabs below.Required 1Required 2Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)NoTransactionGeneral JournalDebitCreditEquipment - newLand - new1214,000138,000Cash28,000Gain on exchange of assets48,000< Required 1Required a >

Exchange means to give up something for something else. Here in the question, Land is exchanged with…

The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange which has commercial substance. Required: 1. What is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thils question by entering your answers In the tabs below. Required 1 Required 2 Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new 214,000 Land - new 138,000 Cash 28,000 Gain on exchange of assets 48,000 < Required 1 Required a>

The Bronco Corporation exchanged land for equipment. The land had a book value of $138,000 and a fair value of $186,000. Bronco pald the owner of the equipment $28,000 to complete the exchange which has commercial substance. Required: 1. What is the falr value of the equipment? 2. Prepere the Journal entry to record the exchange. Answer Is complete but not entirely correct. Complete thils question by entering your answers In the tabs below. Required 1 Required 2 Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Equipment - new 214,000 Land - new 138,000 Cash 28,000 Gain on exchange of assets 48,000 < Required 1 Required a>

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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