The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a fair value of $168,00O. Bronco paid the owner of the equipment $19,000 to complete the exchange which has commercial substance. Roguirodı

The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a fair value of $168,00O. Bronco paid the owner of the equipment $19,000 to complete the exchange which has commercial substance. Roguirodı

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter17: Property Transactions: §1231 And Recapture Provisions

Section: Chapter Questions

Problem 29CE

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Question

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Exercise 10-16 (Algo) Nonmonetary exchange (LO10-6]
The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a fair value of $168,000. Bronco
paid the owner of the equipment $19,000 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.
* Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What is the fair value of the equipment?
Fair value
$ 178,000 X
Required 2 >

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