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In: Accounting

1. Husky Corporation recently entered into an exchange to acquire new equipment to be used in...

1. Husky Corporation recently entered into an exchange to acquire new equipment to be used in its manufacturing process. The new equipment had a fair value of $200,000. In exchange for the new equipment, Husky traded in existing equipment that had an original cost of $300,000, and accumulated depreciation of $240,000, plus paid cash of $125,000. Record the journal entry for this exchange assuming that the exchange: a. Has commercial substance Lacks commercial substance

  1. Has commercial substance

b.Lacks commercial substance

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ekkarill92 answered 2 years ago
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