Calaveras tire exchanged machinery for two pickup trucks, Ask an Expert

Accounting

Calaveras Tire exchanged machinery for two pickup trucks. The book value and fair value of the machinery were $24,000 (original cost of $71,000 less accumulated depreciation of $47,000) and $19,000, respectively. To equalize fair values, Calaveras paid $5,000 in cash.

At what amount will Calaveras value the pickup trucks?Assume the exchange has commercial substance. How much gain or loss will the company recognize on the exchange?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9970459

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