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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown below: FEEBLECo. WEAK,Inc. Equipment 4,000,000 8,000,000Accumulated depreciation 800,000 3,200,000Carrying amount 3,200,000 4,800,000Fair value ? 4,400,000Cash paid by FEEBLE to WEAK 600,000 600,000In FEEBLE’s books, what amounts are recognized for the following?Equipment Gain (Loss)a. 5,000,000 1,200,000b. 4,400,000 600,000c. 3,800,000 1,200,000d. 3,400,000 (600,000)Use the following information for the next three questions:Altitude Company purchased a plot of land for ₱2,000,000 as a plant site. There was a small officebuilding on the plot, conservatively appraised at ₱700,000 which the company will continue to use withsome modification and renovation.The renovation had plans drawn for a factory and received bids for its construction. It rejected all bidsand decided to construct the plant itself. Below are listed additional items that management feels shouldbe included in the property, plant and equipment…
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