Presented below are two independent situations:
(a) Yount Company exchanged an old machine (cost $150000 less $90000 accumulated depreciation) plus $10000 cash for a new machine. The old machine had a fair value of $54000. Prepare the entry to record the exchange of assets by Yount Company.
(b) Lawson Company trades old equipment (cost $90000 less $54000 accumulated deprecia-tion) for new equipment. Lawson paid $36000 cash in the trade. The old equipment that was traded had a fair value of $54000. Prepare the entry to record the exchange of assets by Lawson Company. The transaction has commercial substance.

Question

Quizplus · Accepted Answer

The Answer of 
Presented below are two independent situations:
(a) Yount Company exchanged an old machine (cost $150000 less $90000 accumulated depreciation) plus $10000 cash for a new machine. The old machine had a fair value of $54000. Prepare the entry to record the exchange of assets by Yount Company.
(b) Lawson Company trades old equipment (cost $90000 less $54000 accumulated deprecia-tion) for new equipment. Lawson paid $36000 cash in the trade. The old equipment that was traded had a fair value of $54000. Prepare the entry to record the exchange of assets by Lawson Company. The transaction has commercial substance.

Presented Below Are Two Independent Situations