Question:Anderson Company exchanged equipment used in its manufacturing operations for similar equipment
Question
Question:Anderson Company exchanged equipment used in its manufacturing operations for similar equipment
used in the operations of Woods Corp. The fair value of Woods’ equipment was $45,000. The following information pertains to the exchange:
Anderson Co.
Equipment (cost) $ 64,000
Accumulated depreciation 28,500
Woods Corp.
Equipment (cost) $ 64,000
Accumulated depreciation 17,000
Determine the following for each company involved in the exchange.
| Anderson | Woods | |
| Part 1.Assuming the exchange lacks commercial substance, and Woods pays $5,000 cash, determine: Gain/Loss on Exchange Cost of New Asset | $ ______________ gain/loss $_______________New Asset | $____________Gain/loss $____________New Asset |
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