Question

Bella company entered into an exchange agreement of exchanging its equipment for two pickup vehicles. The equipment has original cost of $32,000 and accumulated depreciation of $7,000. The fair value of equipment was $22,000 and Bella also paid cash of $7,200 for the exchange.​

Answer 1

Explanation:

Equipment = Fair value of equipment given up + Cash paid

Equipment = 17,000 + 8,000

Equipment = $25,000