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Lexi Inc traded equipment with Logan Co. Lexi's equipment, which had a book value of $70,000, along with cash of $5,000, was traded to Logan. Logan's equipment (that was traded) had a cost of $120,000 and book value of $90,000, and it was recently appraised for $85,000. The exchange lacked commercial substance. How much would Lexi record the new equipment in her records?

Lexi Inc traded equipment with Logan Co. Lexi's equipment, which had a book value of $70,000, along with cash of $5,000, was traded to Logan. Logan's equipment (that was traded) had a cost of $120,000 and book value of $90,000, and it was recently appraised for $85,000. The exchange lacked commercial substance. How much would Lexi record the new equipment in her records?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lexi Inc traded equipment with Logan Co. Lexi's equipment, which had a book value of $70,000, along with cash of $5,000, was traded to Logan. Logan's equipment (that was traded) had a cost of $120,000 and book value of $90,000, and it was recently appraised for $85,000. The exchange lacked commercial substance. How much would Lexi record the new equipment in her records?
Transcribed Image Text:Lexi Inc traded equipment with Logan Co. Lexi's equipment, which had a book value of $70,000, along with cash of $5,000, was traded to Logan. Logan's equipment (that was traded) had a cost of $120,000 and book value of $90,000, and it was recently appraised for $85,000. The exchange lacked commercial substance. How much would Lexi record the new equipment in her records?
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