Business, 17.04.2020 18:59 oscarsanchez1530
China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $16,000 and $10,600 (original cost of $33,000 less accumulated depreciation of $22,400), respectively. To equalize the market values of the exchanged assets, China Inn paid $7,400 in cash to Midwest Chicken.
Required:
1. At what amount did Midwest Chicken record the equipment?
2. How much gain or loss did Midwest Chicken recognize on the exchange?
Answers: 2
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China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipme...
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