Alamos Co, exchanged equipment and $18,000 cash for similar equipment. The book value and the fair...

Alamos Co, exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000 respectively. Assuming that the exchange has commercial substance, Alamos would record a gain (loss) of:

Prepare the journal entry for the above transaction.

Expert Solution

Journal entry
Date	General Journal	Debit	Credit
	Equipment - new	$108,000
	Equipment - old		$82,000
	Cash		$18,000
	Gain on exchange		$8,000

ekkarill92 answered 2 years ago

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