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25 January, 18:33

The bronco corporation exchanged land for equipment. the land had a book value of $122,000 and a fair value of $154,000. bronco paid the owner of the equipment $12,000 to complete the exchange which has commercial substance.

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  1. 25 January, 18:43
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    Fair value of land + Cash given = Fair value of equipment$154000 + 12000 = 166000 Equipment (154000 + 12000) 166000 Cash 12000 Land (Book Value) 122,000 Gain ($154,000 - $122,000) 32000
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