A company bought new heating system for $52,000 and was given a trade-in of $2,200 on an old heating system, so the comp...
A company bought new heating system for $52,000 and was given a trade-in of $2,200 on an old heating system, so the company paid $49,800 cash with the trade-in. The old system had an original cost of $46,400 and accumulated depreciation of $42,600. If the transaction has commercial substance, the company should record the new heating system at:
Homework Answers
The transaction has commercial substance, Therefor the new eating system should be recorded at the market value
Hence, Company should record the new heating system at = $52,000
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A company bought new heating system for $52,000 and was given a trade-in of $2,200 on an old heating system, so the comp...
A company bought new heating system for $40,000 and was given a trade-in of $2,500 on...
A company bought new heating system for $40,000 and was given a trade-in of $2,500 on an old heating system, so the company paid $37,500 cash with the trade-in. The old system had an original cost of $35,000 and accumulated depreciation of $31,500. If the transaction has commercial substance, the company should record the new heating system at: Skipped Multiple Choice $40,000. $2,500. 0 $3,500 $3,500. o $41,000. $37,500.
Hunter Saling Company exchanged an old sailboat for a new one. The old sailboat had a...
Hunter Saling Company exchanged an old sailboat for a new one. The old sailboat had a cost of $270,000 and accumulated depreciation of $81,000. The new sailboat had an invoice price of $299,000. Hunter received a trade in allowance of $191,000 on the old sailboat, which meant the company paid $108,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange?
Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a...
Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $300,000 and accumulated depreciation of $150,000. The new sailboat had an invoice price of $326,000. Hunter received a trade in allowance of $166,000 on the old sailboat, which meant the company paid $160,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange?
Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a...
Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $160,000 ad accumulated deprecaition of $100,000. The new sailboat had an invoice price of $270,000. Hunter received a trade allowance of $70,000 on the old sailboat, which meant the company paid $200,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange?
Caleb Co. owns a machine that had cost $49,600 with accumulated depreciation of $22,000. Caleb exchanges...
Caleb Co. owns a machine that had cost $49,600 with accumulated depreciation of $22,000. Caleb exchanges the machine for a newer model that has a market value of $59,000. 1. Record the exchange assuming Caleb paid $33,600 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $25,600 cash and the exchange has commercial substance View transaction list View journal entry worksheet No Transaction Credit General Journal Machinery (new) Accumulated depreciation—Machinery (old) Loss on exchange of...
A company traded an old forklift for a new forklift, receiving a $10,500 trade-in allowance and paying the remaini...
A company traded an old forklift for a new forklift, receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash. The old forklift cost $39,000 and straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date under the assumption it would last five years and have a $5,000 salvage value. a. What was the book value of the old forklift on the date of the exchange? b. What amount of gain or loss (indicate which)...
Cedric Company recently traded in an older model computer for a new model. The old model’s...
Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $191,000 (original cost of $421,000 less $230,000 in accumulated depreciation) and its fair value of the old equipment is $180,000. Cedric paid $61,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Cedric Company recently traded in an older model of equipment for a new model. The old...
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $270,000 (original cost of $590,000 less $320,000 in accumulated depreciation) and its fair value was $300,000. Cedric paid $70,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet...
8. (8 points) This machinery was acquired by trading in used machinery. Facts concerning the trade-in...
8. (8 points) This machinery was acquired
by trading in used machinery. Facts concerning the trade-in are as
follows. Cost of machinery traded (old machine) $100,000
Accumulated depreciation to date of sale (old machine) 40,000 Fair
value of machinery traded (old machine) 83,000 Cash received 12,000
Fair value of machinery acquired (new machine) 71,000 Record the
journal entry for the above nonmonetary asset exchange for the
following scenarios: a. The transaction has commercial substance.
b. The transaction lacks commercial substance...
Cedric Company recently traded in an older model of equipment for a new model. The old...
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $191,000 (original cost of $421,000 less $230,000 in accumulated depreciation) and its fair value of the old equipment is $180,000. Cedric paid $61,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction...
A company bought new heating system for $40,000 and was given a trade-in of $2,500 on an old heating system, so the company paid $37,500 cash with the trade-in. The old system had an original cost of $35,000 and accumulated depreciation of $31,500. If the transaction has commercial substance, the company should record the new heating system at: Skipped Multiple Choice $40,000. $2,500. 0 $3,500 $3,500. o $41,000. $37,500.
Caleb Co. owns a machine that had cost $49,600 with accumulated depreciation of $22,000. Caleb exchanges the machine for a newer model that has a market value of $59,000. 1. Record the exchange assuming Caleb paid $33,600 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $25,600 cash and the exchange has commercial substance View transaction list View journal entry worksheet No Transaction Credit General Journal Machinery (new) Accumulated depreciation—Machinery (old) Loss on exchange of...
A company traded an old forklift for a new forklift, receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash. The old forklift cost $39,000 and straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date under the assumption it would last five years and have a $5,000 salvage value. a. What was the book value of the old forklift on the date of the exchange? b. What amount of gain or loss (indicate which)...
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $270,000 (original cost of $590,000 less $320,000 in accumulated depreciation) and its fair value was $300,000. Cedric paid $70,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet...
8. (8 points) This machinery was acquired
by trading in used machinery. Facts concerning the trade-in are as
follows. Cost of machinery traded (old machine) $100,000
Accumulated depreciation to date of sale (old machine) 40,000 Fair
value of machinery traded (old machine) 83,000 Cash received 12,000
Fair value of machinery acquired (new machine) 71,000 Record the
journal entry for the above nonmonetary asset exchange for the
following scenarios: a. The transaction has commercial substance.
b. The transaction lacks commercial substance...
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $191,000 (original cost of $421,000 less $230,000 in accumulated depreciation) and its fair value of the old equipment is $180,000. Cedric paid $61,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction...
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