Bronco paid the owner of the equipment

Reference no: EM131020498

The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to complete the exchange which has commercial substance.

Required:

1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange. E 10-18: Non monetary exchange LO10-6 [This is a variation of the previous exercise.]

Required: Assume the same facts as in Exercise 10-17 except that Bronco received $10,000 from the owner of the equipment to complete the exchange.

1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.

Reference no: EM131020498

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