Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Discover comprehensive solutions to your questions from a wide network of experts on our user-friendly platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

The Bronco Corporation exchanged land for equipment. The land had a book value of $131,000 and a fair value of $172,000. Bronco received $21,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment

Sagot :

Parrain

Answer: $151,000

Explanation:

The fair value of the equipment is the amount that was less than the fair value of land by the amount of cash that the equipment owner had to pay to complete the transaction:

Fair value of equipment = Fair value of land - Cash paid by owner of equipment

= 172,000 - 21,000

= $151,000

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.