Horton Stores exchanged land and cash of $5,600 for similar land. The book value and the...
Horton Stores exchanged land and cash of $5,600 for similar land. The book value and the fair value of the land were $88,900 and $100,600, respectively.
Assuming that the exchange lacks commercial substance, Horton would record land—new and a gain/(loss) on exchange of assets in the amounts of:
Land Gain/(loss)
a.$106,200 $0
b.$106,200 $11,700
c.$94,500 $0
d.$94,500 $11,700
Homework Answers
Answer : c.$94,500, $0
Explanation :
| Accounts Titles & Explanation | Debit | Credit |
|---|---|---|
| Land—new (Book Value + Cash ) [$88,900 + $5,600] | 94,500 | |
| Cash | 5,600 | |
| Land - old (Book Value) | 88,900 |
Note : When the exchange lacks commercial substance , gain is not recorded.
Add Answer to:
Horton Stores exchanged land and cash of $5,600 for similar
land. The book value and the...
8. Horton Stores exchanged land and cash of $5,000 for similar land. The book value and...
8. Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange has commercial substance, record the transaction: 9. On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 September 1, 2018 December 31, 2018 March 31,...
Alamos Co. exchanged equipment and $18,700 cash for similar equipment. The book value and the fair...
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...
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.
View previous attempt Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value...
View previous attempt Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair value of the old equipment were $80,600 and $90,700, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of: Multiple Choice • $0 0 $(10,100). 0 $27,100. 0 $10,100.
Ford Inc, exchanged land and $7,500 cash for material handling equipment. The land had a book...
Ford Inc, exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Required: 1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance 2. Prepare the journal entry to record the exchange. Assume the exchange lacks commercial substance.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book...
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $555,000 and a fair value of $810,000. Kapono paid $61,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? 2. Assume the fair value of the farmland given is $444,000 instead of $810,000. What is...
Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had...
Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Required: 1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. 2. Prepare the journal entry to record the exchange. Assume the exchange lacks commercial substance. Problem 4. Ford Inc. exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and...
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 $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?
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
The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and...
The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco received $10,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.
8. Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange has commercial substance, record the transaction: 9. On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 September 1, 2018 December 31, 2018 March 31,...
View previous attempt Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair value of the old equipment were $80,600 and $90,700, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of: Multiple Choice • $0 0 $(10,100). 0 $27,100. 0 $10,100.
Ford Inc, exchanged land and $7,500 cash for material handling equipment. The land had a book value of $75,000 and a fair value of $105,000. Required: 1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance 2. Prepare the journal entry to record the exchange. Assume the exchange lacks commercial substance.
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
The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco received $10,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange.
Most questions answered within 3 hours.
-
evaluate the statements below and select those that correctly apply
to the role of PAMPs and...
asked 1 minute from now -
Congratulations! You have just won the Lottery. The Lottery
Commission informs you that you can choose...
asked 4 minutes ago -
bulk flow (in respiration) moves blood from?
Air in and out of lungs?
air into lungs?...
asked 9 minutes ago -
Which of the following describes a private network?
1. A wide area network (WAN) linking sites...
asked 23 minutes ago -
The purpose of this
lab: Wireshark Intro Lab
is to get students
familiar with the use of...
asked 32 minutes ago -
Question 3
A 50 percent deduction is allowed for amounts paid or incurred for
dues and...
asked 30 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 45 minutes ago -
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 44 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 56 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 52 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 55 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 1 hour ago