Bussell Company exchanged the following assets during 2019:Feb. 1Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000.Feb. 1Same facts as above (newer machine worth $30,000), except that the asset being surrendered has a book value of $33,000.Apr. 1Acquired a newer machine by giving up a machine that originally cost $45,000, has a book value of $20,000, and is worth $32,000. In addition, $5,000 cash was received.Apr. 1Same facts as above (machine with an original cost of $45,000), except that the asset being surrendered has a book value of $36,000.Jul. 1Acquired a newer machine worth $90,000 by giving up a machine of equal value. The machine surrendered had originally cost $150,000 and has a book value of $80,000.Jul. 1Same facts as above (new machine worth $90,000), except that the asset being surrendered has a book value of $94,000.Oct. 1Acquired a building in exchange for land that had originally cost $130,000 and is now worth $200,000.Oct. 1Same facts as above (acquired a building in exchange for land), except that $30,000 was paid.Oct. 1Same facts as above (acquired a building in exchange for land), except that $20,000 was received.

When accounting is done on the p[rinciple of commercial substance, the assets value at which the…

Answered: Bussell Company exchanged the following…

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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Bussell Company exchanged the following assets during 2019:

Feb. 1	Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000.
Feb. 1	Same facts as above (newer machine worth $30,000), except that the asset being surrendered has a book value of $33,000.
Apr. 1	Acquired a newer machine by giving up a machine that originally cost $45,000, has a book value of $20,000, and is worth $32,000. In addition, $5,000 cash was received.
Apr. 1	Same facts as above (machine with an original cost of $45,000), except that the asset being surrendered has a book value of $36,000.
Jul. 1	Acquired a newer machine worth $90,000 by giving up a machine of equal value. The machine surrendered had originally cost $150,000 and has a book value of $80,000.
Jul. 1	Same facts as above (new machine worth $90,000), except that the asset being surrendered has a book value of $94,000.
Oct. 1	Acquired a building in exchange for land that had originally cost $130,000 and is now worth $200,000.
Oct. 1	Same facts as above (acquired a building in exchange for land), except that $30,000 was paid.
Oct. 1	Same facts as above (acquired a building in exchange for land), except that $20,000 was received.

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