Chapter 1 Problem 15-10
1. Land 1,500,000
Accumulated depreciation 700,000
Equipment – old 2,000,000
Gain on exchange 200,000
Fair value of equipment given 1,500,000
Less: Book value 1,300,000
Gain on exchange 200,000
2. Equipment - new 1,300,000
Accumulated depreciation 700,000
Equipment – old 2,000,000
3. Equipment - new 2,000,000
Accumulated depreciation 700,000
Equipment – old 2,000,000
Cash 500,000
Gain on exchange 200,000
Fair value 1,500,000
Cash payment 500,000
Cost of new asset 2,000,000
Fair value 1,500,000
Less: Book value 1,300,000
Gain on exchange 200,000
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