Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $29,000 (original cost of $78,500 less accumulated depreciation of $49,500) and $37,500, respectively. Assume Calaveras paid $7,500 in cash and the exchange lacks commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange?
Value of pickup trucks
= Fair value of equipment + Cash
= 37,500 + 7,500
= 45,000
.
Gain on exchange
= Fair value - Book value
= 37,500 - 29,000
Gain on exchange = 8,500
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the...
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $24,000 (original cost of $71,000 less accumulated depreciation of $47,000) and $30,000, respectively. Assume Calaveras paid $5,000 in cash and the exchange lacks commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange? (1) Value of pickup trucks (2) Loss on exchange
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $20.000 (original cost of $65.000 less accumulated depreciation of $45,000 and $17,000, respectively. Colaveras also paid $8,000 in cash. Assume the exchange has commercial substance. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange? Vathos IEEE TELE
Alamos Co. exchanged equipment and $18,700 cash for similar equipment. The book value and the fair value of the old equipment were $81,400 and $90,800, respectively. Assuming that the exchange lacks commercial substance, Alamos would record a gain/(loss) of: $(9,400). $ 9,400. $ 0. $28,100.
Alamos Co. exchanged equipment and $18,300 cash for similar equipment. The book value and the fair value of the old equipment were $80,100 and $90,100, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of: Multiple Choice $(10,000). $10,000. $0. $28,300.
Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,500 (original cost of $29,000 less accumulated depreciation of $16,500) and a fair value of $9,100. Kapono paid $21,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $505,000 and a fair value of $710,000. Kapono paid $51,000 cash...
Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,500 (original cost of $29,000 less accumulated depreciation of $16,500) and a fair value of $9,100. Kapono paid $21,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $505,000 and a fair value of $710,000. Kapono paid $51,000 cash...
[The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,500 (original cost of $29,000 less accumulated depreciation of $16,500) and a fair value of $9,100. Kapono paid $21,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $505,000 and...
The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $17,000 (original cost of $38,000 less accumulated depreciation of $21,000) and a fair value of $10,000. Kapono paid $30,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $550,000 and...
Required information The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $17,000 (original cost of $38.000 less accumulated depreciation of $21.000) and a fair value of $10,000. Kapono paid $30,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of...
Required information (The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $18,000 (original cost of $40,000 less accumulated depreciation of $22,000) and a fair value of $10,200. Kapono paid $32,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of...