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Question
On the first day of the fiscal year, a new walk-in cooler with a list price of $58,000 was acquired in exchange for an old cooler and $44,000 cash. The old cooler had a cost of $25,000 and accumulated depreciation of $16,000. Assume the transaction has commercial substance.
a. Determine the gain to be recorded on the exchange.
b. Journalize the entry for the exchange.
Answer
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