200000 book value 10000 cash exchanges fair value

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$200,000 book value + $10,000 cash Exchanges - Fair Value Greater than Book Value
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10-26 Exchanges – Fair Value Less than Book Value Lacie's Inc. exchanged new equipment and $10,000 cash for equipment owned by Float Inc. Below is information about the asset exchanged by Lacie's. Loss = Book Value – Fair Value Loss = $200,000 – $192,000 = $8,000
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10-27 Losses are recognized on exchanges that have and do not have commercial substance. Thus, when there is a loss fair value is used. Equipment ............................................... 202,000 Accumulated depreciation……… ............. 300,000 Loss on exchange………………………… 8,000 Equipment ……………………… 500,000 Cash ……………………………. 10,000 To record the exchange of equipment. $192,000 fair value + $10,000 cash Exchanges - Fair Value Less than Book Value
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10-28 End of Chapter 10 – Part 1
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