Below is the information relative to an exchange of assets by Bonita Industries. The exchange lacks...
Below is the information relative to an exchange of assets by Stanton Company. The exchange lacks commercial substance. Old Equipment: Book value= $150,000 Fair value= $ 135,000 Cash Paid= $21,000 A. What would Stanton Recored the equipment at? B. What would Santon Record for the gain or loss/
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.
1.Below is the information relative to an exchange of assets by Stanton Company. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid to the Other Company Case I $225,000 $245,000 $45,000 Case II $150,000 $135,000 $21,000 For each of the two cases, answer the following questions: How much should the company record for the new equipment? How much gain or loss should the firm recognize? Indicate whether it is a gain or loss. If no gain...
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid Case A $ 50,600 $ 59,500 $ 15,900 Case B $ 39,000 $ 34,400 $ 8,800 In Case B, Grand Forks would record a gain/(loss) of: Multiple Choice $ 4,600. $(4,200). $(4,600). $ 4,200.
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance Old Equipment Cash Paid Book Value Fair Value 15.2 00 $9000 $ 49.300 $ 59,300 Case A $ 39.400 Case B In Case A Grand Forks would record the new equipment at S 34 200 $49.300 $64.500 $74,500 $59 300
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 II, Wharton records the equipment at $ Answer on its books and gain or (loss) of $ Answer. NB. if reporting a loss, use minus sign in answer. On January 2, 2015, Deck Inc. purchased machinery with a cost of $10,440,000, a useful...
3. Below are listed data relative to an exchange of equipment by Tail and Tales, Inc., Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid Case A $75,000 $80,000 $12,000 Case B $60,000 $56,000 $10,000 For Equipment A, Tail and Tales would record the new equipment at
*Exercise 10-18 Your answer is partially correct. Try again. Bonita Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $882 salvage value) Accumulated Depreciation-old melter straight-line) Secondhand fair value of old melter $19,908 12,600 14,112 7,938 6,552 Prepare the journal entries necessary to record this exchange,...
Reporting an Asset Exchange Clarksten Co. and Kay Inc. exchange equipment. Information related to this exchange for both companies follows. Clarksten Co. Kay Inc. Equipment given up: Equipment (original cost) $60,000 $70,000 Accumulated depreciation 20,000 24,000 Fair value 36.000 48,000 Cash exchanged 112,000) 12,000 Support Answer the following questions, rounding your answers to the nearest whole number, a. Record the exchange for Clarksten Co. assuming the transaction has commercial substance. b. Record the exchange for Kay Inc. assuming the transaction...
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: