Essay
Algon Company owns a machine that cost $560,000,has a book value of $240,000,and an estimated fair value of $480,000.Nogal Company has a machine that cost $720,000,has accumulated depreciation of $400,000,and an estimated fair value of $640,000.Algon pays Nogal cash of $160,000.Assume the trade has commercial substance.
(1)Record the exchange on Algon Company's books.
(2)Record the exchange on Nogal Company's books.
Correct Answer:
Verified
Correct Answer:
Verified
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