The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $56,250. According to an independent appraisal, the land currently is worth $135,000. Tinsley paid $20,000 in cash to complete the transaction.
Required:
1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?
2. Prepare the journal entry to record the exchange assuming the exchange has commercial substance.
3. Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.
4. Prepare the journal entry to record the exchange except that Tinsley received $27,000 in the exchange, and the exchange lacks commercial substance.
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $56,250. According to an independent appraisal, the
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $56,250. According to an independent appraisal, the land currently is worth $135,000. Tinsley paid $17,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $87,500. According to an independent appraisal, the land currently is worth $210,000. Tinsley paid $30,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $68,750. According to an independent appraisal, the land currently is worth $165,000. Tinsley paid $29,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $43,750. According to an independent appraisal, the land currently is worth $105,000. Tinsley paid $15,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $87,500. According to an independent appraisal, the land currently is worth $210,000. Tinsley paid $30,000 in cash to complete the transaction. Prepare the journal entry to record the exchange except that Tinsley received $42,000 in the exchange, and the exchange lacks commercial substance.
Unelary exchange (L010-6] The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete the transaction Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2....
The Parsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Parsley carried the land at its original cost of $27,500. According to an independent appraisal, the land currently is worth $ 66,000. Parsley gave $13,200 in cash to complete the transaction. Required: (1) What is the fair value of the new parcel of land received by Parsley? (2) Prepare the journal entry to record the exchange...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $100,000. According to an independent appraisal, the land currently is worth $240,000. Tinsley paid $33,000 in cash to complete the transaction. Required: 1. What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance? 2. Prepare the journal...