TB EX Qu. 7-204 Nate's Hot Dogs exchanges long-term assets with Lizzy's. Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The fair value and book value of the machinery were $31,000 and $24,000 (original cost of $34,000 less accumulated depreciation of $10,000), respectively. Since the delivery truck was worth $34,000, Nate paid an additional $3.000 in cash to Lizzy Record the exchange for Nate's Hot Dogs. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list:

TB EX Qu. 7-204 Nate's Hot Dogs exchanges long-term assets with Lizzy's. Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The fair value and book value of the machinery were $31,000 and $24,000 (original cost of $34,000 less accumulated depreciation of $10,000), respectively. Since the delivery truck was worth $34,000, Nate paid an additional $3.000 in cash to Lizzy Record the exchange for Nate's Hot Dogs. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list:

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The fair value and book value of the machinery were $30,000 and $20,000 (original cost of $33,000 less accumulated depreciation of $13,000), respectively. Since the delivery truck was worth $33,000, Nate paid an additional $3,000 in cash to Lizzy. Record the exchange for Nate's Hot Dogs. Transaction General Journal Debit Credit 1
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