6. This machinery was acquired by trading in used machinery. Facts concerning the trade- in are as follows. a Cost of machinery traded (old machine) Accumulated depreciation to date of sale (old machine) Fair value of machinery traded (old machine) Cash received Fair value of machinery acquired (new machine) b $120,000 50,000 93,000 Record the journal entry for the above nonmonetary asset exchange for the following scenarios: The transaction has commercial substance. The transaction lacks commercial substance. 7,000 86,000

6. This machinery was acquired by trading in used machinery. Facts concerning the trade- in are as follows. a Cost of machinery traded (old machine) Accumulated depreciation to date of sale (old machine) Fair value of machinery traded (old machine) Cash received Fair value of machinery acquired (new machine) b $120,000 50,000 93,000 Record the journal entry for the above nonmonetary asset exchange for the following scenarios: The transaction has commercial substance. The transaction lacks commercial substance. 7,000 86,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1MBA

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Subject: acounting
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Which of the following accounts is credited in a journal entry for a like-kind asset exchange? A Truck (old) B Accumulated Depreciation for truck (old) C Loss of Exchange Assets D Tires (new)
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Subject :- Accounting
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