Wilhelm Company Exchanged a Piece of Equipment with a Cost

question 22

Essay

Wilhelm Company exchanged a piece of equipment with a cost of $300,000 and accumulated depreciation of
$240,000 for land owned by James Corporation. No cash was exchanged. James' land had an original cost of
$190,000. At the date of exchange, both assets had a fair market value of $180,000.
Required:
Prepare the journal entry that each company should record.

---

Definitions:

Allocating Resources

The process of distributing available resources, such as labor and capital, among various projects or departments to optimize output.

Facilitating Communication

The process of making communication easier within an organization through various tools and strategies to ensure clear, effective exchange of information.

Controlling Profit

The process of managing or influencing the financial outcomes of a business to ensure profitability and achieve financial goals.

Evaluating Performance

The process of analyzing, assessing, and documenting the efficiency and effectiveness of operations, personnel, or investments.