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New Ventures Construction Company purchased excavation equipment on March 15,2019. 6 marks On...

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Accounting

New Ventures Construction Company purchased excavation equipment on March 15,2019.
6 marks On June 19,2023, New Ventures exchanged this equipment for construction equipment
owned by Traditional Concepts Inc. Other information pertaining to the exchange follows:
Fair value of old excavating equipment owned by New Ventures on the
date of the exchange
Accumulated depreciation recorded by New Ventures on the old
excavation equipment
Cost of old excavation equipment to New Ventures
Fair value of equipment received by New Ventures in the exchange
Cash received by New Ventures in the exchange
Required:
Prepare the journal entry for New Ventures Corporation to record the exchange,
assuming the transaction is determined to have commercial substance. (4 marks)
Prepare the journal entry for New Ventures Corporation to record the exchange,
assuming the transaction is determined to lack commercial substance. (2 marks)
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