In 2018, Vega Corporation and Sarkissian Company engaged in the following exchange of assets: Vega gave...
In 2018, Vega Corporation and Sarkissian Company engaged in the following exchange of assets:
- Vega gave up a small widget cutter with a cost of $40,000 and accumulated depreciation of $28,000 to acquire a deluxe widget cutter from Sarkissian Company. The deluxe widget cutter cost Sarkissian $100,000, has a book value of $25,000, and a fair value of $9,000. Vega also paid Sarkissian $2,000 cash.
- Vega acquired a delivery truck from Sarkissian in exchange for a packaging machine. The machine cost $60,000, has a book value of $12,000, and a fair value of $18,000. The truck has a cost of $24,000 and a book value of $16,000 on Sarkissian’s books. Sarkissian also paid Vega $1,000.
Required: Make the entries to record the two exchanges of assets. You may assume that both transactions have commercial substance.
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In 2018, Vega Corporation and Sarkissian Company engaged in the
following exchange of assets:
Vega gave...
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18...
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company. 2. Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck....
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation...
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Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300...
Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300 less $28,200 accumulated depreciation) and cash of $8,400 for a delivery truck. The machine is estimated to have a fair market value of $35,900. The cash flows related to the truck will be different from the cash flows generated from the use of the machine. Requirement Prepare the journal entry to record the exchange on the books of the Probst Company. (Record debits first,...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000;...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company.
Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of...
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Problem 10-6 Nonmonetary exchange (L010-6] Southern Company owns a building that it leases to others. The...
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Problems 485 5 P10-s (Non-donetary- Exchanges) Holyfield Corporation wishes to exchange a machine used in its...
Problems 485 5 P10-s (Non-donetary- Exchanges) Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company offered to exchange a similar machine plus 23,000. (The exchange has commercial 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance 3. Liston Company offered to exchange a similar machine but wanted 3,000 in addition to Holyfield's 4. In addition, Holyfield contacted Greeley...
EXtra credr Sample Non-monetary Exchange Questions 10 poinTs # to 16 Exchange has commercial substance "18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company. 2. Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck....
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck. The fair value of the used truck has been determined at $10,000 and Bright...
Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300 less $28,200 accumulated depreciation) and cash of $8,400 for a delivery truck. The machine is estimated to have a fair market value of $35,900. The cash flows related to the truck will be different from the cash flows generated from the use of the machine. Requirement Prepare the journal entry to record the exchange on the books of the Probst Company. (Record debits first,...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company.
Question 29 (1 point) In January 2018, Vega Corporation purchased a patent at a cost of $200.000. Legal and filing fees of $50,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January, 2021, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss)...
Problem 10-6 Nonmonetary exchange (L010-6] Southern Company owns a building that it leases to others. The building's fair value is $1550,000 and its book value is $920.000 (original cost of $250.000 less accumulated depreciation of $1230,000). Southern exchanges this for a building owned by the Eastern Company. The building's book value on Eastern's books is $1.070,000 foriginal cost of $1,750,000 less accumulated depreciation of S680000) Eastern also gives Southern $155,000 to complete the exchange. The exchange has commercial substance for...
Problems 485 5 P10-s (Non-donetary- Exchanges) Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company offered to exchange a similar machine plus 23,000. (The exchange has commercial 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance 3. Liston Company offered to exchange a similar machine but wanted 3,000 in addition to Holyfield's 4. In addition, Holyfield contacted Greeley...
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