On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of theexchange are as follows:Robers’ Asset Phifer’s AssetOriginal cost $120,000 $140,000Accumulated depreciation 55,000 63,000Fair value 75,000 70,000To equalize the exchange, Phifer paid Robers $5,000 in cash.Required:Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.

Q: Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in…

A:

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A: GAAP: Generally Accepted Accounting Principles.

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A: ''Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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