The Shubert Theatre and the Broadway Theatre entered into a transaction on December 16, 20x5 to exchange some of their lighting equipment. On December 16, 20x5, the information for each theatre is as follows: Shubert Broadway Original cost 800,000 640,000 Accumulated depreciation 560,000 260,000 Fair market value 400,000 350,000 Cash paid by Broadway to Shubert- 50,000 Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance.

The Shubert Theatre and the Broadway Theatre entered into a transaction on December 16, 20x5 to exchange some of their lighting equipment. On December 16, 20x5, the information for each theatre is as follows: Shubert Broadway Original cost 800,000 640,000 Accumulated depreciation 560,000 260,000 Fair market value 400,000 350,000 Cash paid by Broadway to Shubert- 50,000 Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance.

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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