Business, 18.07.2020 19:01 ctyrector

Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash
Book Value Fair Value Received
Equipment A $74,000 $81,300 $11,300
Equipment B $ 61,600 $54,800 $10,300
For Equipment B, Pensacola would record a gain/(loss) of:
a. $5,300
b. $(6,800)
c. $(7,800)
d. none of these answer choices are correct

Answers: 2

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Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transact...

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