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equipment that cost $660,000 and has accumulated depreciation of $300,000 is exchanged for equipment with a fair value of $500,000 and $100,000 cash is paid. the exchange lacked commercial substance. the new machine should be recorded at

Respuesta :

The new machine should be recorded at $ 360000.

What is machine?

Machine is defined as a physical system that uses power to exert forces, regulate movement, and carry out an action. The main purpose of most simple machines is to reduce the amount of force required to execute an easy operation.

The commodity received should be recognized at the net book value of the asset swapped when a transaction lacks commercial significance.

The net book value in this instance is:

=  660,000 - 300,000 = $360,000

Thus, the new machine should be recorded at $ 360000.

To learn more about machine, refer to the link below:

https://brainly.com/question/3135614

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