Honeycutt Co. recently engaged in an exchange of equipment with ABC Co. The following information...
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Accounting
Honeycutt Co. recently engaged in an exchange of equipment with ABC Co. The following information pertains to the equipment each company owned immediately before the exchange:
Honeycutt Co.
ABC Co.
Equipment cost
$431,675
$263,140
Accumulated depreciation
147,920
84,510
Fair value
269,360
218,855
In addition, Honeycutt received $50,505 cash from ABC.
REQUIRED: Give the entry Honeycutt Co. must make to account for this exchange. Assume the exchange has commercial substance.
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