Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively.
-Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of:

Question

Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively. 
-Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of:

Quizplus · Accepted Answer

$\begin{array}{|l|l|l|}
\hline \text { Equipment-new }(\mathrm{BV} \text { of old }+\$ 18,000) & 100,000 \
\hline \text { Cash } & & 18,000 \
\hline \text { Equipment-old (book value) } & & 82,000\\hline
\end{array}$

Alamos Co Exchanged Equipment and $18,000 Cash for Similar Equipment