Prepare the journal entry for saman co

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Question - Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to Amar for this exchange. Other details of the transaction are provided below:

Saman Co. equipment:

Amar Inc. Building:

Cost

$950,000

Cost

$750,000

Accumulated depreciation

150,000

Accumulated depreciation

180,000

Fair value

600,000

Fair value

550,000

Required -

a) Prepare the journal entry in the books of both companies, assuming both are publicly traded.

b) Assuming now that Saman is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Saman Co.

Reference no: EM133125436

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