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Equipment that cost $653000 and has accumulated depreciation of $280000 is exchanged for equipment with a fair value of $480000 and $120000 cash is received. The exchange lacked commercial substance. The
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Equipment that cost $653000 and has accumulated depreciation of $280000 is exchanged for equipment with a fair value of $480000 and $120000 cash is received. The exchange lacked commercial substance. The gain to be recognized from the exchange is $293000 $50600 $200000 $93000

User Salmaan
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3 votes

Answer:

$50,600

Step-by-step explanation:

Calculation for The gain to be recognized from the exchange is

Gain to be recognized= (12000+(12000/480000)*25300

Gain to be recognized= $50,600

Therefore The gain to be recognized from the exchange is $50,600

User DumP
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