A machine cost $1272000, has annual depreciation of $212000, and has accumulated depreciation of $1007000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $291500, it is exchanged for a machine with a fair value of $1431000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at O $1139500. O $1431000. O $1298500.

A machine cost $1272000, has annual depreciation of $212000, and has accumulated depreciation of $1007000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $291500, it is exchanged for a machine with a fair value of $1431000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at O $1139500. O $1431000. O $1298500.

Name: A machine cost $1272000, has annual depreciation of $212000, and has
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: A machine cost $1272000, has annual depreciation of $212000, and has accumulated depreciation of $1007000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of$291500, it is exchanged for a machine with a fair value of $143100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?
On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given
Bremer Company made the following exchanges of assets during 2019: Prepare Bremer's journal entry for each exchange. Assume all exchanges were determined to have commercial substance.
On March 1, 2019, Extreme Company exchanged an old machine having a cost of P450,000 and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d. P150,000
accouting
On 1 July 2022, your company acquired a machine for $103,000 on credit and decided to depreciate it for 25 years with no residual amount. The credit was taken from a local bank that charges 4.2% per annum with payments every year on 30 June. Assume that the fair values of this asset were: Date Fair Value 1/7/2023 $105,000 30/11/2023 $98,000 30/6/2024 $80,000 a. Using the cost model, prepare the relevant journal entries from the date of acquisition to 30 June 2023 b.Using the revaluation model, prepare the relevant journal entries from the date of acquisition to 30 June 2023.
help me to solve this problem
Please help solve
What is the unit product cost under variable costing?
An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. A new cooler with marked price of P200,00 was purchased on February 10, 2021. Freight charge of P3,000 and installation cost of P6,000 were paid. How much is the gain (-loss) from the sale of the old cooler?
Arabs Company purchased a machine for P650,000 on January 1, 2016. The estimated salvage value of the machine was P46,500 and Arabs estimated that the machine would have a useful life of 10 years, with depreciation being computed using straight line method. How much is the carrying value of the machine on December 31, 2019? P408,600 P455,100 P241,400 P390,000
A machine costing P120,000, with accumulated depreciation of P95,000, with a fair market value of P27,500, was exchanged for a new machine with a fair value of P135,000 and the proper amount of cash is paid. The exchange has commercial substance. The new machine is to be recorded at what amount?