Homework Answers
Solution a:
Cash given = Fair value of new press - trade in allowance = $492300 - 216600 = $275,700
Solution b:
Gain or loss on the exchange = Trade in allowance - Book Value = $216600 - $194900 = $21700 (Gain)
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answer all blank
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by trading in used machinery. Facts concerning the trade-in are as
follows. Cost of machinery traded (old machine) $100,000
Accumulated depreciation to date of sale (old machine) 40,000 Fair
value of machinery traded (old machine) 83,000 Cash received 12,000
Fair value of machinery acquired (new machine) 71,000 Record the
journal entry for the above nonmonetary asset exchange for the
following scenarios: a. The transaction has commercial substance.
b. The transaction lacks commercial substance...
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