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In: Accounting

On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that...

  1. On January 1, 2014, Fishbone Corporation sold equipment to Lost Company that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000 non-interest-bearing note due on December 31, 2016. The prevailing rate of interest for a note of this type on January 1, 2014, was 5%

A. Record the 1/1/14 transaction for fishbone corporation and all necessary entries from 2014-2016.

B. Record the 1/1/14 transaction for Lost Company and all necessary entries from 2014-2016.

Please do a step by step on how and why you got your answer, thank you!!!

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Expert Solution

ekkarill92 answered 2 years ago
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