Unformatted text preview: Wasson owns two tractors that are currently valued at $35,000. One of these two tractors will be exchanged (and no boot will be involved). Homer Wasson, the owner of the Wasson Farming, is trying to decide which tractor to give up, and is interested in learning about the financial statement impact of the exchange. Prepare alternative journal entries, assuming an exchange of Tractor A versus Tractor B. Facts about each tractor follow: Tractor A Cost, $100,000; accumulated depreciation $80,000 Tractor B Cost, $75,000; accumulated depreciation $25,000...
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- Spring '11
- Accounting, Generally Accepted Accounting Principles, Tractors, Wasson Farming Corporation, Homer Wasson, versus Tractor B., substantial hauling costs