Reference no: EM132600819

Question - On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:

Robers' Asset Phifer's Asset Original cost $165,000 $185,000

Accumulated depreciation 91,000 99,000

Fair value 88,500 74,500

To equalize the exchange, Phifer paid Robers $14,000 in cash.

Required - Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.

1) Record the exchange of equipment for robers company. The exchange has commercial substance for both companies. To equalize the exchange, Phifer paid Robers $14,000 cash.

2) Record the exchange of equipment for Phifer Corporation. The exchange has commercial substance for both companies. To ewualize the exchange, phifer paid robers $14,000 in cash.