Provide correct answer the accounting question only experts answer give Alamos Co. exchanged equipment and $18,100 cash forsimilar equipment. The book value and the fair value of theold equipment were $81,300 and $91,100, respectively.Assuming that the exchange has commercial substance,Alamos would record a gain/(loss) of.

Step 1: Define Exchange of Fixed AssetIn exchange of a fixed asset, if the transaction has…

Answered: Alamos Co. exchanged equipment and…

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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Foxtrot Co. exchanged equipment and $17,100 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,700, respectively. Assuming that the exchange lacks commercial substance, Foxtrot would record a gain/(loss) on exchange of assets in the amount of: Multiple Choice $(10,700). $0. $10,700. $27,800.
A company exchanged old equipment and $18,200 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,800, respectively. Assuming that the exchange has commercial substance, the company would record a gain(loss) of:
ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment had a carrying value of P3,500,000 and fair value of P1.875,000. DEF's equipment has a fair value of P1,000,000 and carrying value of P1,200,000. DEF paid P700,000 cash to ABC. If the exchange has commercial substance, DEF would recognize gain (loss) on exchange of: 900,000 (900,000) 200,000 (200,000)
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
Bloomington Inc. exchanged land for equipment and $2,600 in cash. The book value and the fair value of the land were $105,500 and $89,100, respectively.Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss)on exchange of assets in the amounts of: Equipment Gain/(loss) a. $ 86,500 $ 2,600 b. $ 105,500 $ (2,600 ) c. $ 86,500 $ (16,400 ) d. None of these answer choices are correct. Option C Option D Option A Option B
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?
Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the equipment. Assume that Arca exchanged the old equipment for new equipment, paying $4,000 cash. The fair market value of the new equipment is $5,000. Journalize Arca's exchange of equipment. Assume this exchange has commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss)
Sheridan Company traded machinery with a book value of $746650 and a fair value of $685000. It received in exchange from Pharoah Company a machine with a fair value of $796000. Sheridan also paid cash of $79600 in the exchange. Pharoah’s machine has a book value of $746650. What amount of gain or loss should Sheridan recognize on the exchange (assuming lack of 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
C Inc. and D Co. have an exchange with no commercial substance. The asset given up by C Inc. has a book value of P12,000. The asset given up by D Co. has a book value of P20,000. Cash of P4,000 is received by D Co. What amount should C Inc. record for the asset received?
Cullumber Company exchanged equipment that cost $69400 and has accumulated depreciation of $33000 for equipment with a fair value of $48700 and received $14400 cash. The exchange lacked commercial substance. The gain to be recognized from the exchange is O $6093 gain. O $1300 gain. $15700 gain. $17000 gain.
China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment. The fair value and book value of the delivery equipment given were $28,600 and $31,400 (original cost of $35,400 less accumulated depreciation of $4,000), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $8,600 in cash from China Inn. Record the gain or loss for Midwest Chicken on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the gain or loss for Midwest Chicken on the exchange of the equipment. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit

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Alamos Co. exchanged equipment and $18,100 cash for similar equipment. The book value and the fair value of the old equipment were $81,300 and $91,100, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of.