Chapter 10 Acquisition and Disposition of Property Plant and

Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment

Jackson Company exchanged land and cash of $8,000 for equipment. The land had a book value of $55,000 and a fair value of $60,000.

(a) Prepare the journal entry to record the exchange, assuming this transaction has commercial substance.

(b) Prepare the journal entry to record the exchange, assuming this transaction lacks commercial substance.

Solution

a) Journal entry ;

b) Journal entry ;