Company A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a carrying amoung of 300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional 90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is 420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?

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: Rus exchanged a number of used trucks plus cash for semi-truck. The used trucks have a combined book…

A: In a situation where commercial substance exists, the asset acquired should be recorded initially at…

Q: addition, Kelso paid £45, 500 cash for the new truck. The exchange lacked commercial substance. What…

A: Commercial substance refers to the economic impact of a transaction beyond its accounting treatment.…

Q: Rus exchanged a number of used trucks plus cash for semi-truck. The used trucks have a combined book…

A: In a situation where commercial substance exists, the asset acquired should be recorded initially at…

Q: (i)Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances…

A: US GAAP doesn't recognize revaluations, while IFRS does recognize revaluations as per IAS 16…

Q: (a) Indicate whether the following expenses are capital expenditures or operational expenses.…

A: There are two type of expenditures incurred in the business. One is capital expenditure and other is…

Q: Hanson Ltd provides consulting services to The Bowen Ltd. Rather than paying in cash, it is agreed…

A: When customer promises to pay consideration other than in cash form , then entity should measure its…

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: LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for…

A: All fixed assets in the business should be capitalised at their purchase cost along with all…

Q: Sunset Acres reported net income of $58.0 million. Included in that number were trademark…

A: Trademark amortization: It is a non-cash expense. Since it is reduced in calculation of Net Income…

Q: Calculate the gain to be recognized from the exchange. Gain recognized   $       SHOW LIST OF…

A:

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: Cranberry Company purchased two pieces of equipment from a Canadian vendor for $400,000. If the…

A: The initial cost is the total cost incurred while purchasing an asset. When determining an asset's…

Q: Line Company exchanged a car from its inventory for a computer system to be used in its…

A: Solution: In case of exchange of assets having commercial substance, assets received and asset given…

Q: Sheffield Corporation owns a patent that has a carrying amount of $640,000. Sheffield expects future…

A: Impairment loss - when the carrying value of the asset in the books exceeds the recoverable amount…

Q: A machine cost $1128000, has an annual depreciation of $188000, and has a accumulated depreciation…

A: Step 1: Step 2:Proper amount of cash paid means = Fair value of new asset - fair value of old…

Q: A.  XYZ Ltd has a system of depreciating its assets at a higher rate than required. The value of…

A: Assets refer to the resources of a company which the company invests in for the purpose of having a…

Q: (a) Indicate whether the following expenses are capital expenditures or operational expenses.…

A: Introduction:-Capitalized cost of asset consists of acquisition cost of asset and other costs are…

Q: Refer to the situation described in BE 11–16. Assume that SCC’s fair value of $40 million…

A:

Q: Alpha Company and Beta, Inc. are both manufacturing companies that use various equipment in their…

A: In the case of lack of commercial substance, the company will not be able to record gain or loss…

Q: Prepare the journal entries to record the exchange on the books of both companies. Assume that the…

A: (a) Lack Commercial Substance Windsor Co.  Equipment  Dr.                             13,920…

Q: Martinez Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for…

A: An exchange of assets with cash consideration is often used in business deals and mergers and…

Q: ABC Corp. sold goods to the Bureau of Internal Revenue in the amount of Php 100,000.00 after winning…

A: VAT due refers to the amount of Value Added Tax (VAT) that a business or individual is required to…

Q: Marigold Corporation traded a used truck for a new truck. The used truck cost $25,000 and has…

A: The journal entries are prepared to record the transactions on regular basis. In case of exchange…

Q: Blue Spruce Inc. trades its used machine (cost $11,900 less $4,100 accumulated depreciation) for a…

A: Derecognized Old Assets :When assets are exchanged, the assets given up are derecognized at book…

Q: If a machine cost $20,000 and the company owes the bank $18,000 on a loan for the purchase of the…

A: Lets understand the basics. As per IAS1, when any asset is purchased by creating any liability then…

Q: On 05.20X1 the company leased the third property and received a total rent of 12 months amounting to…

A: Journal Entry The purpose providing the journal entry to enter the required transaction into debit…

Q: P400,000. Compute the gain or loss from disposal of Vehicle. (Use negative sign if your answer is…

A: Trade-in allowance  It  is the reduction in the trade value of an asset offered for sale by the…

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: Sheffield Company traded a used truck for a new truck. The used truck cost $44,700 and has…

A: The journal entries are prepared to record the transactions on regular basis. The book value of the…

Q: The "alpha", a small construction company, owed the company BETA 4000 euros, an amount that it had…

A: As per accrual concept of accounting, all revenues for the particular accounting period should be…

Q: A company purchased a machine valued at $70,000. It traded in an old (similar) machine for a $9, 400…

A: Accumulated Deprecation is a  fiscal account term that represents the total  deprecation…

Q: Crane Corporation owns a patent that has a carrying amount of $612,000. Crane expects future net…

A: Impairment loss - when the carrying value of the asset in the books exceeds the recoverable amount…

Q: customer has returned unwanted goods and the company has agreed to refund the customer in full.…

A: Net assets are the value of assets minus the liabilities of the company. In other words, the net…

Q: On March 31, 2019, ABC Enterprises traded in an old machine having a carrying amount of P1,600,000…

A: Assets means the resources owned by company. When amount received at the time of sale of assets is…

Q: nge an old equipment for a new equipment.The cost and accumulated depreciation of the old equipment…

A: The adjusted net asset method is a business valuation strategy that modifies a company's reported…

Q: A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in…

A: The term profit and loss (P&L) statement refers to a budget that summarizes the revenues, costs,…

Q: Acme Corp. entered into an exchange transaction with XYZ Co.  Acme gave XYZ used production…

A: Journal Entries: Date  Particulars Debit Credit   Vehicle 1 15,000     Vehicle 2 30,000…

Q: On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset…

A: The exchange has significantly changed the cash flows of each entity. the value of new assets  will…

Q: Suppose your company sells services of $310 in exchange for $200 cash and $110 on account.…

A: Cash flow from operating activities includes all the cash receipts and cash payments which are…

Q: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garciasells…

A: Whenever business sells fixed assets to any other party, then gain or loss on sale will be…

Q: On May 1, 2021, AAA and BBB formed a joint operation to acquire and sell a special type of…

A: Joint venture means where two or more persons comes together to do some business and share profit as…

Q: Pronghorn Corporation purchased the net assets of Ivanhoe Corporation on January 2, 2020 for…

A: Journal entry It is a record of a business transactions in the business books. In double-entry…

Q: How much is the balance of the note payable as of December 31, 2021 arising from the purchase of…

A: Down payment for machinery=100000 Notes payable 4 of 250000 each Total Notes payable of 10,00,000

Q: ZY Corporation exchanges its old equipment and USD100,000 cash for new equipment. The old equipment…

A: The cost of new equipment is calculated as sum of book value of old asset and cash paid for…