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The Chase Company Exchanged Equipment Costing $240,000 with Accumulated Depreciation

Question 40

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The Chase Company exchanged equipment costing $240,000 with accumulated depreciation of $90,000 for equipment owned by Jones Corporation. The Jones equipment cost $330,000 with accumulated depreciation of $120,000. The fair value of both pieces of equipment was $300,000.
Provide the necessary entries to record the transaction on both companies' books assuming:
The Chase Company exchanged equipment costing $240,000 with accumulated depreciation of $90,000 for equipment owned by Jones Corporation. The Jones equipment cost $330,000 with accumulated depreciation of $120,000. The fair value of both pieces of equipment was $300,000. Provide the necessary entries to record the transaction on both companies' books assuming:

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