Please include all the calculations for my reference. Thanks Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.Belmont paid Aylmer $4,000 cash as part of the deal.|The following information relates to the assets of the two companies at the time of the exchange.Aylmer Inc.$61,000$44,000$23,000Belmont Inc.Equipment (cost)Accumulated Depreciation$71,000$58,000$19,000Fair value of the equipmentInstructions:a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance.DateDescriptionDrCrb) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance.DateDescriptionDrCr

(a.) Description Debit Credit Equipment (new) A/c $19,000 Accumulated…

Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc. Belmont paid Aylmer $4,000 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange. Aylmer Inc. $61,000 Belmont Inc. Equipment (cost) Accumulated Depreciation Fair value of the equipment $44,000 $23,000 $71,000 $58,000 $19,000 Instructions: | a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance. Date Description Dr Cr b) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance. Date Description Dr Cr

Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc. Belmont paid Aylmer $4,000 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange. Aylmer Inc. $61,000 Belmont Inc. Equipment (cost) Accumulated Depreciation Fair value of the equipment $44,000 $23,000 $71,000 $58,000 $19,000 Instructions: | a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance. Date Description Dr Cr b) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance. Date Description Dr Cr

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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