Homework Answers
| Book value of similar machine | 46220 |
| Less: Trade in allowance | 40000 |
| Unrecognized loss | 6220 |
| Price of the new machine | 148000 |
| Plus: Unrecognized loss | 6220 |
| Cost basis fo new equipment | 154220 |
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A new drill press was purchased for $148,000 by trading in a similar machine that had...
Asset Traded for Similar Asset A printing press priced at a fair market value of $492,300...
Asset Traded for Similar Asset A printing press priced at a fair market value of $492,300 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $216,600, what is the amount of cash given? b. Assuming that the book value of the press traded in is $194,900, what is the gain...
Asset Traded for Similar Asset A printing press priced at a fair market value of $380,100...
Asset Traded for Similar Asset A printing press priced at a fair market value of $380,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $15,200, what is the amount of cash given? b. Assuming that the book value of the press traded in is $16,100, what is the gain...
1. Asset Traded for Similar Asset A printing press priced at a fair market value of...
1. Asset Traded for Similar Asset A printing press priced at a fair market value of $380,100 is acquired in a transaction that has commerclal substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press 3. a. Assuming that the trade-in allowance is $15,200, what is the amount of cash given? 4. b. Assuming that the book value of the press traded in is S16,100, what...
Asset Traded for Similar Asset WN A printing press priced at a fair market value of $587,100 is acquired in a transacti...
Asset Traded for Similar Asset WN A printing press priced at a fair market value of $587,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $258,300, what is the amount of cash given? b. Assuming that the book value of the press traded in is $232,500, what is the...
answer all blank Asset Traded for Similar Asset A printing press priced at a fair market...
answer all blank
Asset Traded for Similar Asset A printing press priced at a fair market value of $373,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press . Assuming that the trade-in allowance is $164,200, what is the amount of cash given? b. Assuming that the book value of the press traded in is $147,800, what...
9. On January 1, 2018, Hobart Mfg. Co. purchased a drill press at a cost of...
9. On January 1, 2018, Hobart Mfg. Co. purchased a drill press
at a cost of $33,600. The drill press is expected to last 10 years
and has a residual value of $6,400. During its 10-year life, the
equipment is expected to produce 500,000 units of product. In 2018
and 2019, 27,000 and 88,000 units, respectively, were produced.
Required information The following information applies to the questions displayed below.] On January 1, 2018, Hobart Mfg. Co. purchased a drill press...
journal entry for exchange with commercial substance- gain Example 9: South Texas Drilling trades drill press...
journal entry for exchange with commercial substance- gain
Example 9: South Texas Drilling trades drill press A for drill press B from another company. has a book value of $11,000 (cost $32,000 less $21,000 accumulated depreciation) and a fair $8,000. Drill press B has a list price of $38.000, and the seller has allowed a trade-in allowance of $15,000 on the press.
Chapter 9 Fall 2020 Practice problems week 3 1. Jones Corporation purchased a machine at a...
Chapter 9 Fall 2020 Practice problems week 3 1. Jones Corporation purchased a machine at a cost of $40,000. After taking $10,000 of depreciation on the machine, Jones sold the machine for $28,000 in the current year. Please complete the following: a. What is the book value at the date the machine is sold? b. How much gain or loss will be recorded on the sale? cIn the space below, prepare the journal entry to record the sale: 2. Three...
EIF Manufacturing company needs to overhaul its drill press or buy a new one. The facts...
EIF Manufacturing company needs to overhaul its drill press or buy a new one. The facts have been gathered, and are as follows: Current New $100,000 machine $80,000 30,000 40,000 Annual cash operating costs 70,000 20,000 5,000 Purchase price, new Current book value Overhaul needed now 40,000 Current salvage value Salvage value in five years 20,000 Required: Based on present value analysis, which alternative is the most desirable with a current required rate of return of 20 percent? Show computations,...
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving...
Assume Corbins ,Inc purchased an automated machine 5 years ago that had an estimated economic life of 10 years. The Automated Machines originally cost $300,000 and has been fully depreciated, leaving a current book value of $0. The actual market value of this drill press is $80,000. The company is considering replacing the automated machine with a new one costing $380,000. Shipping and installation charges will add an additional $10,000 to the cost. Corbins., Inc also has paid a sunk...
Asset Traded for Similar Asset A printing press priced at a fair market value of $492,300 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $216,600, what is the amount of cash given? b. Assuming that the book value of the press traded in is $194,900, what is the gain...
Asset Traded for Similar Asset A printing press priced at a fair market value of $380,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $15,200, what is the amount of cash given? b. Assuming that the book value of the press traded in is $16,100, what is the gain...
1. Asset Traded for Similar Asset A printing press priced at a fair market value of $380,100 is acquired in a transaction that has commerclal substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press 3. a. Assuming that the trade-in allowance is $15,200, what is the amount of cash given? 4. b. Assuming that the book value of the press traded in is S16,100, what...
Asset Traded for Similar Asset WN A printing press priced at a fair market value of $587,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $258,300, what is the amount of cash given? b. Assuming that the book value of the press traded in is $232,500, what is the...
answer all blank
Asset Traded for Similar Asset A printing press priced at a fair market value of $373,100 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press . Assuming that the trade-in allowance is $164,200, what is the amount of cash given? b. Assuming that the book value of the press traded in is $147,800, what...
9. On January 1, 2018, Hobart Mfg. Co. purchased a drill press
at a cost of $33,600. The drill press is expected to last 10 years
and has a residual value of $6,400. During its 10-year life, the
equipment is expected to produce 500,000 units of product. In 2018
and 2019, 27,000 and 88,000 units, respectively, were produced.
Required information The following information applies to the questions displayed below.] On January 1, 2018, Hobart Mfg. Co. purchased a drill press...
journal entry for exchange with commercial substance- gain
Example 9: South Texas Drilling trades drill press A for drill press B from another company. has a book value of $11,000 (cost $32,000 less $21,000 accumulated depreciation) and a fair $8,000. Drill press B has a list price of $38.000, and the seller has allowed a trade-in allowance of $15,000 on the press.
Chapter 9 Fall 2020 Practice problems week 3 1. Jones Corporation purchased a machine at a cost of $40,000. After taking $10,000 of depreciation on the machine, Jones sold the machine for $28,000 in the current year. Please complete the following: a. What is the book value at the date the machine is sold? b. How much gain or loss will be recorded on the sale? cIn the space below, prepare the journal entry to record the sale: 2. Three...
EIF Manufacturing company needs to overhaul its drill press or buy a new one. The facts have been gathered, and are as follows: Current New $100,000 machine $80,000 30,000 40,000 Annual cash operating costs 70,000 20,000 5,000 Purchase price, new Current book value Overhaul needed now 40,000 Current salvage value Salvage value in five years 20,000 Required: Based on present value analysis, which alternative is the most desirable with a current required rate of return of 20 percent? Show computations,...
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