Question - In 2017, Company A and Company B entered into an agreement to exchange machinery. Per the agreement, Company A provided a forklift to Company B in exchange for Company B's tractor. To complete the exchange, Company B paid Company A $15,000 cash. Each company reported the machines as fixed assets on their respective balance sheets. Information about the machines for each company is included in the tables below:
Company A's forklift Company B's tractor
Fair Market Value $150,000 ?
Original Cost $225,000 $190,000
Accumulated Depreciation $55,000 $70,000
Required - Determine the fair market value of Company B's tractor on the date of the exchange.