Question
In: Accounting
Assume that the following cases are independent and rely on the following data. Make entries on...
Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies.
| Jensen Co. | Merton Co. | |
| Equipment (cost) | $2,700,000 | $4,950,000 |
| Accumulated depreciation | 870,000 | 2,700,000 |
| Fair value of equipment | 2,100,000 | 2,100,000 |
Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance.
| Jensen Co.'s Books: | Merton Co.'s Books: |
Jensen Co. and Merton Co. traded the above equipment. The
exchange lacks commercial substance.
| Jensen Co.'s Books: | Merton Co.'s Books: |
Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies.
| Jensen Co. | Merton Co. | |
| Equipment (cost) | $2,700,000 | $4,950,000 |
| Accumulated depreciation | 870,000 | 3,150,000 |
| Fair value of equipment | 1,680,000 | 2,100,000 |
| Cash received (paid) | (420,000) | 420,000 |
Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance.
| Jensen Co.'s Books: | Merton Co.'s Books: |
Jensen Co. and Merton Co. traded the above equipment. The
exchange lacks commercial substance.
| Jensen Co.'s Books: | Merton Co.'s Books: |
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