Solution for Case 2 5. Major Co. exchanged equipment with Minor, Inc. Pertinentdata are shown below:Equipment iMajor Co.2,000,000Minor, Inc.Accumulated depreciation2,000,000 o4,000,000Carrying amount400,0001,600,000Fair value1,600,0002,400,000Cash paid by Major Co. to Minor, Inc.1,900,000280,0002,200,000280,000 Chapter 15mediatelytion of aWS:20,00010,00030,000Property, Plant and Equipment (Part 1)103Major Co. cannot determine the fair value of the asset given up.Case 2: Use the information in the fact pattern above but assumeThe exchange transaction has commercial substance. Provide thejournal entries in the books of Major Co.PIOHS

As per IND AS 16 , Property , Plant and Equipment , If any Property , Plant and Equipment is…

5. Major Co. exchanged equipment with Minor, Inc. Pertinent data are shown below: Equipment ht Major Co. Minor, Inc. Accumulated depreciation 4,000,000 Carrying amount 1,600,000 Fair value 2,400,000 Cash paid by Major Co. to Minor, Inc. 2,200,000 9 280,000 2,000,000 400,000 1,600,000 1,900,000 280,000

5. Major Co. exchanged equipment with Minor, Inc. Pertinent data are shown below: Equipment ht Major Co. Minor, Inc. Accumulated depreciation 4,000,000 Carrying amount 1,600,000 Fair value 2,400,000 Cash paid by Major Co. to Minor, Inc. 2,200,000 9 280,000 2,000,000 400,000 1,600,000 1,900,000 280,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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