Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial...
Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial substance for a transaction is based on professional judgment. b) All non-monetary exchanges of assets are considered incidental to the company’s ordinary business activities. c) The transaction must have commercial substance in order for the exchange to occur. d) All transactions will result in a gain or loss being realized.
Homework Answers
Regarding the exchange of non monetary asset, determining commercial substance for the transaction is completely based upon professional judgement. Hence, correct option is (a) .
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Which of the following statements regarding the exchange of
non-monetary assets is true? a) Determining commercial...
Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial...
Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial substance for a transaction is based on professional judgment. b) All non-monetary exchanges of assets are considered incidental to the company’s ordinary business activities. c) The transaction must have commercial substance in order for the exchange to occur. d) All transactions will result in a gain or loss being realized.
Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial...
Which of the following statements regarding the exchange of non-monetary assets is true? a) Determining commercial substance for a transaction is based on professional judgment. b) All non-monetary exchanges of assets are considered incidental to the company’s ordinary business activities. c) The transaction must have commercial substance in order for the exchange to occur. d) All transactions will result in a gain or loss being realized.
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18...
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company. 2. Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck....
Consider the following information relating to the non-monetary exchange of assets. Fair value of assets given up Fa...
Consider the following information relating to the non-monetary exchange of assets. Fair value of assets given up Fair value of assets acquired Carrying value of assets given up Carrying value of assets acquired $150,000 $150,000 $65,000 $100,000 Assuming the transaction does not have commercial substance, the acquired asset would be valued at $120,000 $100,000 $150,000 $65,000
P10-9 (Non-Monetary Exchanges) On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset...
P10-9 (Non-Monetary Exchanges) On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as Asset A, and Wiggins' is referred to as Asset B. The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Hyde, Inc. Cash received by Wiggins, Inc. Asset A £96,000 40,000 60,000 15,000 Asset B £110,000 47,000 75,000 15,000 Instructions (a) Assuming that the exchange...
the following information relates to an exchange of assets by Wharton Company. The exchange lacks commercial...
the following information relates to an exchange of assets by Wharton Company. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid Case I $75,000 $85,000 $15,000 Case II $50,000 $45,000 . $7,000 For Case I, Wharton records the equipment at $---------on its books and reports a gain or (loss) of $ --------on the exchange.
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation...
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck. The fair value of the used truck has been determined at $10,000 and Bright...
International Inc. and Jodstar are exchanging productive assets. The exchange lacks commercial substance. Jodstar paid I...
International Inc. and Jodstar are exchanging productive assets. The exchange lacks commercial substance. Jodstar paid International $8,000 boot. Here is the information on the assets being exchanged: International – Asset I Jodstar – Asset J Original cost 50,000 50,000 Accumulated depreciation 19,000 25,000 Fair value 40,000 32,000 Potential gain (loss) Record the entry for each party to record the exchange: International entry to record acquisition of asset J: Jodstar entry to record acquisition of Asset I:
answer please chio 3 of Dware Com Question 3: Non-monetary exchange. Rogers Co. had a sheet...
answer please
chio 3 of Dware Com Question 3: Non-monetary exchange. Rogers Co. had a sheet metal culter that cost $96.000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value o ST6,000 and Accumulated depreciation of $42,000 On January 1, 2015, the old cutter is exchanged for a new cutter with a fair value of $48,000. The exchange had commercial substance. Rogers also paid $12,000 cash. Assume that the last fiscal...
Place T (true) or F (false) in front of each of the following statements. ____ 1....
Place T (true) or F (false) in front of each of the following statements. ____ 1. Plant assets should be written down (below cost) when their market value has declined temporarily. ____ 2. An asset's cost less its accumulated depreciation equals its fair value. ____ 3. The units of activity method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time. ____ 4. The correction of prior periods' depreciation estimates would...
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company. 2. Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck....
Consider the following information relating to the non-monetary exchange of assets. Fair value of assets given up Fair value of assets acquired Carrying value of assets given up Carrying value of assets acquired $150,000 $150,000 $65,000 $100,000 Assuming the transaction does not have commercial substance, the acquired asset would be valued at $120,000 $100,000 $150,000 $65,000
P10-9 (Non-Monetary Exchanges) On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as Asset A, and Wiggins' is referred to as Asset B. The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Hyde, Inc. Cash received by Wiggins, Inc. Asset A £96,000 40,000 60,000 15,000 Asset B £110,000 47,000 75,000 15,000 Instructions (a) Assuming that the exchange...
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck. The fair value of the used truck has been determined at $10,000 and Bright...
answer please
chio 3 of Dware Com Question 3: Non-monetary exchange. Rogers Co. had a sheet metal culter that cost $96.000 on January 5, 2010. This old cutter had an estimated life of ten years and a salvage value o ST6,000 and Accumulated depreciation of $42,000 On January 1, 2015, the old cutter is exchanged for a new cutter with a fair value of $48,000. The exchange had commercial substance. Rogers also paid $12,000 cash. Assume that the last fiscal...
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