Hello, I really don't know how to deal with this question require 2, could you show me the answer procedures with an explanation? The Bronco Corporation exchanged land for equipment. The land had a book value of $130,000 and a fair value of $170,00.received $20,000 from the owner of the equipment 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.X Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.)NoTransactionGeneral JournalDebitCredit11Equipment - new15,000 XLand - old13,000 XCash-2,000 XGain on exchange of assets2,000 X< Required 1Required 2 >

Fair value of equipment = Fair value of land + Cash given Gain on exchange = Cost of equipment - (…

The Bronco Corporation exchanged land for equipment. The land had a book value of $130,000 and a fair value of $170,000 received $20,000 from the owner of the equipment 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.

The Bronco Corporation exchanged land for equipment. The land had a book value of $130,000 and a fair value of $170,000 received $20,000 from the owner of the equipment 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.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 35P

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The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 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.
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