When an exchange of similar assets involves a gain what does it do
When an exchange of similar assets involves a gain what does it do
Homework Answers
In a case where exchange of assets involves 'commercial substance' i.e. significant change in future cashflows, then the entire gain in that case is recognized.
Where there is no commercial substance and the exchange of assets doesn't involve cash, no gain is recognized.
If some cash is RECEIVED by us, then gain recognized is. ((Cash received)/(Cash Rec'd.+ Fair value of asset received)). ×. Total gain
If some cash is paid(cash amount less than 25% of total fair value of the asset received) no gain is booked.
If cash paid is greater than 25% of fair value of asset received, than entire gain on the transaction is booked.
A gain or loss on the exchange of similar assets will be recorded if the transaction...
A gain or loss on the exchange of similar assets will be recorded if the transaction has O a. commercial substance. b. a high value. c. a trade-in allowance. d. boot.
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the...
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.
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Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the...
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
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How do central banks influence exchange rates? Purchase foreign assets to attempt to depreciate their exchange...
How do central banks influence exchange rates? Purchase foreign assets to attempt to depreciate their exchange rate. Sell foreign assets to attempt to appreciate the exchange rate. Some banks refrain from intervening at all in exchange rates. Some banks attempt to hold their exchange rate at a fixed value. All of the above. What is the exchange rate policy of the Chinese central bank? The Chinese bank is active in managing the exchange rate of the yuan with the dollar....
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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.
A gain or loss on the exchange of similar assets will be recorded if the transaction has O a. commercial substance. b. a high value. c. a trade-in allowance. d. boot.
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
1. (Introductory) What is the U.S. Securities and Exchange Commission? What is its purpose? Why does it have information of interest to traders seeking to gain illegal profits? Hint: you may find this information on the web site at www.sec.gov 2. (Introductory) What methods did hackers use to get access to the databases of the U.S Securities and Exchange Commission containing financial information? 3. (Advanced) How do the events described in this article demonstrate the critical need to maintain the...
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