Question

The bronco corporation exchanged land for equipment. the land had a book value of $122,000 and a fair value of $154,000. bronco paid the owner of the equipment $12,000 to complete the exchange which has commercial substance.

Answer 1

Fair value of land + Cash given = Fair value of equipment$154000 + 12000 =166000 Equipment (154000 + 12000 )166000 Cash 12000 Land (Book Value)122,000 Gain ($154,000 - $122,000) 32000

Step-by-step explanation:

Answer 2

Fair value of land + Cash given = Fair value of equipment$154000 + 12000 =166000 Equipment (154000 + 12000 )166000 Cash 12000 Land (Book Value)122,000 Gain ($154,000 - $122,000) 32000