Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash. The old machine cost $478000 and had a net book value of $343000. The old machine had a fair value of $310000. Which of the following is the correct journal entry to record the exchange assuming commercial substance? Equipment   659500         Accumulated Depreciation       135000     Equipment       478000     Cash       46500 Equipment   356500         Equipment       310000     Cash       46500  Equipment   356500

Q: Caleb Co. owns a machine that had cost $42,400 with accumulated depreciation of $18,400. Caleb…

A: Journal entry: It refers to the recording of the transaction and event takes place in the business…

Q: ullumber Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for…

A: Calculation of Gain or Loss:   Cullumber Co. Riverbed Co. Fair Value of Old Equipment $18,000…

Q: Hot Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: As per IAS 16 PPE When PPE are acquired for exchange of another ppe, the same should be valued at…

Q: machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of…

A: According to the Security Exchange Commission -Fair Value refers to the price received to sell an…

Q: Stellar Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for…

A: Journal entry: Journal is a book of prime entry or a book of original entry in which transactions…

Q: Tommy's Trucks Co. traded in a used truck for a new one. The original cost of the old truck was…

A: Calculation of cost of acquire a new truck and cost of disposal are as follows.

Q: Below is the information relative to an exchange of old equipment for new equipment by Ehrlich…

A: As per provisons of IFRS, where the exchange of assets takes place then the new asset shall be…

Q: Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to…

A: If any Property , Plant & Equipment is obtained under exchange with other non monetary assets (…

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A: ''Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from…

A: Formula: Gain on exchange = Cash received on exchange + fair value of computer - Undepreciated.…

Q: SINA Company furnace, which has a current book value of $45000 (Original Cost less accumulated…

A: Gain loss on Disposition of assets = Amount received from insurance company - current book value of…

Q: JK Corp traded some used Machinery with book value of $60,000 (accumulated depr $50,000) and a FMV…

A: Formulas:

Q: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

A: Disposal of assets: Disposal is an activity of selling the worn-out assets that is no longer in need…

Q: On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company.…

A: If the asset is acquired in exchange of another assets, then the cost value of acquired asset…

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: When exchange lack commercial substance exist, the exchange of assets would be recorded at cost of…

Q: Pensacola Inc. purchased equipment on January 1, 2016 for $135,000.After 3 years Pensacola exchanged…

A: Cost basis means the value of an asset for tax purposes, generally, the purchase price of the asset.…

Q: Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference…

A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…

Q: New Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair value…

A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…

Q: Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a…

A: Here in this question, we are required to determine how much gain or loss should be recorded by…

Q: Hoyle Company traded machinery with a book value of $680,000 and a fair value of $720,000. In…

A: Book value (also known as the carrying value) is the amount at which an asset is being reported in…

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A: When the commercial substance exists, the asset acquired must be recognized at Fair value, & If…

Q: Lawson Company purchased equipment, on 1/10/2012. The cost was $90,000, with 10 years useful life,…

A: Depreciation under SLM method   = (cost - salvage value)/useful life  As per IFRS purchase/ sale…

Q: King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair…

A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…

Q: Cedric Company recently traded in an older model computer for a new model. The old model’s book…

A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…

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A: The verification of the percentage of the cash received whether it exceeds 25% of the fair value of…

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A:

Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to…

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Q: Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small…

A: $     Cost of the truck 20000     Less: Accumulated depreciation 18000     Book Value 2000…

Q: amount of loss

A: Carrying amount of the old machine P16,800 Cash difference paid P6,000 Total cash price of the…

Q: BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000.…

A: List price (i.e., P 800,000) is the price listed on the machine. The initial cost of machine will be…

Q: Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business…

A: The acquisition of assets is a part of business activities. When the company disposes of the asset…

Q: Pensacola Inc. purchased equipment on January 1, 2016 for $135,000. Aer 3 years Pensacola exchanged…

A: Non-current assets: Non-current assets are the assets purchased not the purpose of resale. It's…

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: If exchange of assets lacks commercial substance , i.e. fair values are not reliable then Property…

Q: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

A: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: Journal means the book of prime entry where all entries are recorded in different pages.

Q: Cullumber Company traded machinery with a book value of $525000 and a fair value of $1025000. It…

A: The company is required to record  a gain in the books of accounts for the exchange of assets if the…

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A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…

Q: Consider each of the independent transactions below: a) The University of Belize traded an older…

A: In the case of an exchange of assets for obtaining a new asset, the gain or loss from the exchange…

Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…

A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…

Q: Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.…

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

Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for…

A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks…

Q: A machine cost $240,000, has annual depreciation expense of $48,000, and has accumulated…

A: a. Record the journal entry necessary to recognize depreciation expense on April 2017 as shown…