What is Evergreen's realized and recognized gain on these financial accounting question? Evergreen Solutions exchanges machinery in a like-kindexchange. Evergreen receives machinery with a fair marketvalue of $45,000 and transfers machinery worth $35,000(adjusted basis of $20,000) and cash of $10,000.What is Evergreen's realized and recognized gain?

Step 1: Definition of Realized and Recognized GainRealized Gain: The difference between the fair…

Answered: Evergreen Solutions exchanges machinery…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 37CE

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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?
Hoyle Company traded machinery with a book value of $680,000 and a fair value of $720,000. In exchange, it received a machine with a fair value of $800,000. Hoyle also paid cash of $80,000 in the exchange. What amount of gain or loss should Hoyle recognize on the exchange (assuming the exchange lacks commercial substance)? Hart Corporation owns machinery with a book value of $570,000. It is estimated that the machinery will generate future cash flows of $600,000. The machinery currently has a fair value of $420,000. How much asset impairment loss should Hart recognize?
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:
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 LACKS commercial substance, DEF would capitalize the new equipment at: 500,000 1,000,000 1,200,000 1,900,000
Bonita Industries traded machinery with a book value of $1110200 and a fair value of $1820000. It received in exchange from Carla Vista Co. a machine with a fair value of $1638000 and cash of $182000. Carla Vista’s machine has a book value of $1703520. What amount of gain should Bonita recognize on the exchange (assuming lack of commercial substance)? $182000 $709800 $ -0- $70980
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-
V6
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-
Firm M exchanged an old asset with a $11, 500 tax basis and a $29, 000 FMV for a new asset worth $ 22,500 and $6,500 cash. Required: If the exchange is nontaxable, compute Firm M's realized and recognized gain and tax basis in the new asset. How would your answers change if the new asset were worth only $ 11,000, and Firm M received $18,000 cash in the exchange?
Barney exchanges an office building with an adjusted basis of $280,000 and a fair market value of $300,000 for another office building with a fair market value of $270,000 and $30,000 cash. What is Barney's recognized gain or loss? A) $0 B) $20,000 C) $30,000 D) $270,000
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?
Compute the gain or loss on the transfer of equipment.

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Evergreen Solutions exchanges machinery in a like-kind exchange. Evergreen receives machinery with a fair market value of $45,000 and transfers machinery worth $35,000 (adjusted basis of $20,000) and cash of $10,000. What is Evergreen's realized and recognized gain?