E9-21 Trade in asset—two situations [10–15 min] Community Bank recently traded in office fixtures. Here are the facts:

Price: $ 2.99


E9-21 Trade in asset—two situations [10–15 min]
Community Bank recently traded in office fixtures. Here are the facts:

Requirements
1. Record Community Bank’s trade-in of old fixtures for new ones.
2. Now let’s change one fact and see a different outcome. Community Bank feels
compelled to do business with Mountain Furniture, a bank customer, even
though the bank can get the fixtures elsewhere at a better price. Community
Bank is aware that the new fixtures’ market value is only $127,000. Now record
the trade-in.