ACC 5230 Problem Set 3

ACC 5230 Problem Set 3 in $21 Only
Create a single Excel document with one worksheet/tab for each problem. Each problem is worth 20 points.
Problem 1
Equipment that cost $80,000 and has accumulated depreciation of $63,000 is exchanged for similar equipment with a fair value of $35,000 and $15,000 cash is received. The exchange lacked commercial substance.

Directions (20 Points): Respond to these questions on a separate Excel spreadsheet as directed on the Problem Set 3 instructions.
a) Show the calculation of the gain to be recognized from the exchange.
b) Prepare the entry for the exchange.

Problem 2