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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Question
dont give answer in image format
![6.
This machinery was acquired by trading in used machinery. Facts concerning the trade-
in are as follows.
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)
$120,000
50,000
93,000
7,000
86,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffca6a5ca-3bd9-4780-8bda-794fd6722f54%2Ff4cfbda7-1100-4914-bea2-90d29607ff1a%2Fdamlfen_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6.
This machinery was acquired by trading in used machinery. Facts concerning the trade-
in are as follows.
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)
$120,000
50,000
93,000
7,000
86,000
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.
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