amount of loss
Q: Sheridan Company traded machinery with a book value of $746650 and a fair value of $685000. It…
A: Commercial substance: It exists in business transactions where the outcome is anticipated to cause…
Q: King Corp owns machinery with a book value of $760k. It is estimated that the machinery will…
A: Impairment: Impairment loss of an asset is recorded when the asset’s fair value unexpectedly falls…
Q: Hot Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…
A: As per IAS 16 PPE When PPE are acquired for exchange of another ppe, the same should be valued at…
Q: Monty Corp. exchanges old delivery equipment for new delivery equipment. The book value of the old…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same…
A: Exchange of assets means when one asset is being exchanged with another asset. Whether commercial…
Q: machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of…
A: According to the Security Exchange Commission -Fair Value refers to the price received to sell an…
Q: China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave…
A: The concept of an exchange of equipment refers to a transaction where two parties swap or trade…
Q: Davis Company exchanged an old machine with a cost of $120,000, total accumulated depreciation of…
A: The exchange refers to the situation where old assets are exchanged with new assets. The new…
Q: A machine cost €120,000, has annual depreciation of €20,000, and has accumulated depreciation of…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: Sheridan Corp. exchanged similar pieces of equipment with Elongo Corp. No cash was exchanged. Since…
A: A non-monetary asset exchange is a transaction where two parties swap assets with or without…
Q: Calculate the gain to be recognized from the exchange. Gain recognized $ SHOW LIST OF…
A:
Q: In 2015, Bambung Corporation acquired production machinery at a cost of £416,000, which now has a…
A: The objective of the question is to calculate the amount of loss on impairment that Bambung…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: This question is related to non-monetary exchange Accounting for non-monetary interactions,…
Q: Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from…
A: Formula: Gain on exchange = Cash received on exchange + fair value of computer - Undepreciated.…
Q: At the beginning of 2022, Suarez Corp. traded in an old machine for a newer model, a change which…
A: Book value of asset is the difference between original cost of asset and accumulated depreciation…
Q: Declarmen Corporation owns a factory in the United Kingdom. A change in business climate indicates…
A: The objective of the question is to calculate the amount of impairment loss that Declarmen…
Q: Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a…
A: The Book value is the value of an asset or a company's equity reported on its financial statements,…
Q: A machine cost $1104000, has annual depreciation of $184000, and has accumulated depreciation of…
A: An exchange of nonmonetary assets takes place between two entities. The accounting for nonmonetary…
Q: In December 202, Angelyn Company exchanged an old machine, costing P3,000,000 and 50% depreciated,…
A: The recorded value of the old machine should be the fair market value of the old machine and the…
Q: Please explain aboug your asnwer. Sheridan Corp. exchanged similar pieces of equipment with Elongo…
A: A non-monetary asset exchange is a transaction where two parties swap assets with or without…
Q: Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Assuming that the trade-in allowance is $225,000, what is the amount of cash given? Assuming that…
A: Net purchase price= Fair value -Trade in allowance Gain or loss on exchange= Trade in allowance-…
Q: New Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair value…
A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…
Q: On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of…
A: The exchange transactions are incurred to acquire an similar assets from other company in exchange…
Q: Sheridan Corp. exchanged similar pieces of equipment with Elongo Corp. No cash was exchanged. Since…
A: A non-monetary asset exchange is a transaction where two parties swap assets with or without…
Q: 1. Denver, Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000…
A: Solution Dear student as per Q&A guideline we are required to answer the first question only .…
Q: Detailed explaination please Swifty Corporation has equipment with a carrying amount of…
A: Solution:- Calculation of an impairment to its equipment as follows:- Impairment loss =Carrying…
Q: What amount of gain should Cullumber recognize on the exchange (assuming lack of commercial…
A: amount of gain should Cullumber recognize on the exchange (assuming lack of commercial substance)…
Q: Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb…
A: The objective of the question is to record the exchange of a machine owned by Caleb Company for a…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…
Q: King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair…
A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…
Q: ABC Co. exchanged a used machine with XYZ Co. for a similar machine with less use. ABC Co. machine…
A: When assets are acquired through exchange with similar assets that are considered as non-monetary…
Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair…
A: When ever an Equipment has a commercial substance then the Equipment is to be recorded at Fair value…
Q: Bonita Industries traded machinery with a book value of $1110200 and a fair value of $1820000. It…
A: Commercial substance in a exchange transaction means when expectation is such that future cash flows…
Q: Johnson Co. trades in a machine with a book value of $10,000 for a new machine with a list value of…
A: Exchange of Assets Exchange of asset with no commercial substance is a condition in which the…
Q: ected to be significantly different from th iguration of cash flows of the land exchanged. Wha unt…
A: Gain on sale of the asset shall be recognized by taking the difference between the sale value of the…
Q: any exchanged old equipment and $18,200 cash for similar equipment. The book value and the fair…
A: To provide a more accurate depiction of the exchange's economic effects, the commercial substance of…
Q: Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business…
A: The acquisition of assets is a part of business activities. When the company disposes of the asset…
Q: An airplane priced at a fair value of $750,000 is acquired in a transaction that has commercial…
A: Trade-in allowance refers to the amount of reduction in the price of the property being sold due to…
Q: China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave…
A: Assets Assets are the monetary resources of company and are recorded in the year-end balance sheet.…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: If exchange lacked commercial , there will be no profit or loss and exchange will be recorded at…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: Amount Bonnie should record for the asset received=Book value of asset given up+cash…
Q: The gain to be recognized from the exchange
A: Book value = cost-accumulated depreciation = 600000-475000 = 125000 Fair value =…
Winn Company exchanged an old machine having a carrying amount of P16,800, and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. The
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Yin Co traded in an old machine having a carrying amount of P16,800, and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. What amount of loss should Yin Co. recognized on this exchange?China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $17,000 and $10,000 (original cost of $35,000 less accumulated depreciation of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $8,000 in cash to Midwest Chicken. At what amount did China Inn record the delivery truck? How much gain or loss did China Inn recognize on the exchange?Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $23,000 (original cost of $69,500 less accumulated depreciation of $46,500) and $18,500, respectively. Assume Calaveras paid $9,500 in cash and the exchange has commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange?
- Cullumber Company traded machinery with a book value of $525000 and a fair value of $1025000. It received in exchange from Marigold Corp. a machine with a fair value of $922500 and cash of $102500. Marigold’s machine has a book value of $973750. What amount of gain should Cullumber recognize on the exchange (assuming lack of commercial substance)? $102500 $50000 $500000 $ -0-Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The following information relates to this exchange: Carrying amount of the car, 600,000List selling price of the car, 900,000’ Fair value of the computer, 860,000’; Cash difference paid by Caine, 100,000. What is the cost of the computer acquired in exchange? 1. Indicate the appropriate entries requires for each of the transactions. 2. Will Caine company declare a gain or loss on this transaction?A machine cost $1128000, has annual depreciation of $188000, and has accumulated depreciation of $893000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $258500, it is exchanged for a machine with a fair value of $1269000 and the proper amount of cash is paid. The exchange had commercial substance.The gain to be recorded on the exchange is
- Monarch exchanged its old equipment for new equipment which resulted in a $35,000 gain. The fair value of the new equipment is $270,000. Monarch also received $30,000 cash on the exchange. The fair value of the old equipment was $303,000. If the transaction does not have commercial substance, what is the amount of the gain, if any, that Monarch can recognize? (Do not include $ signs, commas or decimals in your answer.)The Tuvok Company exchanged an old asset with a $125,700 tax basis and a $155,000 FMV for a new asset with a $147,250 FMV. Assume that this transaction is a like-kind exchange. Write all numbers with a comma, but no dollar sign (example: 130,000). a. For the exchange to occur (and be nontaxable), how much boot (if any) does Tuvok needs to receive? b. Calculate the gain realized: Calculate the gain recognized: c. Calculate the basis of the new asset for Tuvok: d. Assume the transaction is not a like-kind exchange and is a taxable transaction. Calculate the gain realized: Calculate the gain recognized:PROBLEM 3 Bea Co. had a machine with a carrying amount of P450,000. Jane Co. had a delivery vehicle with a carrying amount of P300,000. Bea and Jane Co. exchanged the machine and vehicle, and Jane Co. 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. Required 1. How much gain or loss should be recorded by Bea Co? 2. How much gain or loss should be recorded by Jane Co.?
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)