Hello tutor provide solution this question A printing press priced at a fair market value of $275,000 is acquired in atransaction that has commercial substance by trading in a similar pressand paying cash for the difference between the trade-in allowance andthe price of the new press.a) Assuming that the trade-in allowance is $90,000, what is the amountof cash given?b) Assuming that the book value of the press traded in is $108,500, whatis the gain or loss on the exchange?

Step 1: Define Fair Market ValueFair market value can be defined as the price at which an asset can…

Answered: A printing press priced at a fair…

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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A printing press priced at a fair market value of $275,000 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press.a Assuming that the trade-in allowance is $90,000, what is the amount of cash given?b. Assuming that the book value of the press traded in is $68,000, what is the gain or loss on the exchange?
A lathe priced at a fair market value of $124,000 is acquired in a transaction that has commercial substance by trading in a similar lathe and paying cash for the difference between the trade-in allowance of $45,000 and the price of the new lathe. Assuming that the book value of the lathe traded in is $36,000, what is the gain or loss on the exchange?
Asset Traded for Similar Asset A printing press priced at a fair market value of $606,400 is acquired in a transaction that has commercial substance by trading in a similar press and paying cash for the difference between the trade-in allowance and the price of the new press. a. Assuming that the trade-in allowance is $266,800, what is the amount of cash given? $ b. Assuming that the book value of the press traded in is $240,100, what is the gain or loss on the exchange?
An airplane priced at a fair value of $750,000 is acquired in a transaction that has commercial substance by trading in a similar airplane and paying cash for the difference between the trade-in allowance and the price of the new airplane. Required: Assuming that the trade-in allowance is $225,000, what is the amount of cash given? Assuming that the book value of the airplane traded-in is $175,000, what is the gain or loss on the exchange?
An airplane priced at a fair value of $750,000 is acquired in a transaction that has commercial substance by trading in a similar airplane and paying cash for the difference between the trade-in allowance and the price of the new airplane. Required: a. Assuming that the trade-in allowance is $225,000, what is the amount of cash given? b. Assuming that the book value of the airplane traded-in is $175,000, what is the gain or loss on the exchange? Show Your Work:
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipmentwere $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively.Calaveras also paid $8,000 in cash. At what amount will Calaveras value the pickup trucks? How much gain orloss will the company recognize on the exchange? Assume the exchange has commercial substance.
Cullumber Company traded machinery with a book value of $490000 and a fair value of $1060000. It received in exchange from Vaughn Manufacturing a machine with a fair value of $954000 and cash of $106000. Vaughn’s machine has a book value of $1007000. What amount of gain should Cullumber recognize on the exchange (assuming lack of commercial substance)? $106000 $57000 $570000 $ -0-
Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?
Keach Company traded machinery with a book value of $285,000 and a fair value of $270,000. It received in exchange from Marlin Company a machine with a fair value of $300,000. Keach also paid cash of $30,000 in the exchange. Marlin's machine has a book value of $285,000. The transaction lacks commercial substance. What amount of gain or loss should Keach recognize on the exchange? O $30,000 gain $-0- $1.500 loss $15,000 loss
How much should be recorded as cost of the new equipment acquired and as gain (loss) on exchange? *
Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. To equalize fair values, Calaveras paid $8,000 in cash. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange? Assume the exchange has commercial substance.
Hinrich Company traded machinery with a book value of $120,000 and a fair value of $200,000. It received in exchange from Noach Company a machine with a fair value of $180,000 and cash of $20,000. Noach's machine has a book value of $190,000. The transaction lacks commercial substance. What amount of gain should Hinrich recognize on the exchange? O $-0- O $8.000 $20,000 O $80,000

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