Solve this accounting question Gilly Construction trades in an old tractor for anew tractor, receiving a $29,000 trade-inallowance and paying the remaining $83,000in cash. The old tractor had cost $96,000 andhad accumulated depreciation of $52,500.1. What is the book value of the old tractor atthe time of exchange?2. What is the loss on this asset exchange?3. What amount should be recorded (debited)in the asset account for the new tractor?

Step 1: Introduction to the Balance sheetIn accounting, the balance sheet is a formal accounting…

Answered: Gilly Construction trades in an old…

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 32CE

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Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new bus cost $67,000, but Willis was given a trade-in allowance of $10,000. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes. c. Explain how the gain or loss would be reported in the company's income statement. Solutions a. $57,000 ($67,000 less $10,000 trade-in allowance) b. Trade-in allowance Less: Book value ($52,000 - $34,000) Loss on trade-in $ 10,000 c. The $8,000 loss on trade-in is reported in Willis Bus Service's income statement following the amount of income from operations. (18,000) (8,000)
Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine was sold for $17,000, what was the anmount of the gain or loss recorded at the time of the sale? Select one: a. $16,000. b. $17,000 C. $68,000 d. $3,000
Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was$52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new buscost $65,000, but Mathews was given a trade-in allowance of $10,000.a. What amount of cash did Mathews have to pay to acquire the new bus?b. Compute the gain or loss on the disposal for financial reporting purposes.c. Explain how the gain or loss would be reported in the company’s income statement.
On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?
Sony Company has decided to sell one of its old machines on December 31, 2019. The machine was purchased for $88,000, and the accumulated depreciation was $ 68,000. If the machine was sold for $17,000, what was the amount of the gain or loss recorded at the time of the sale? nestion Select one: a. The answer does not exist b. $3,000 C. $68,000 d. $16,000. Tim e. $17,000 Previous page Next page OSHIBA FI F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 PRTSC SYSRQ F12 HOM PAUS -因 * 2 5 HOME 8 PGUP 9. Y ! P 4 F G y H i K END 1 PGDN V N i INS DEL ALT ALT * 19 E
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Rocky Company trades equipment with a book value of $24,970 for new equipment with a list price of $103,850. $77,880 cash is paid and there is a $25,970 trade-in allowance. There is a well established market for the old equipment traded in. The fair market value of the old equipment is $23,970. What amount of gain or loss will be recorded by Rocky? a) $25,970 b) $0 gain or loss c) $1,000 loss d) $1,000 gain e) None of the other alternatives are correct
Willis Company trades in a printing press for a newer model. The cost of the old printing press was $62,000, and accumulated depreciation up to the date of the trade - in is $46,000. The company also pays $45,000 cash for the newer printing press. The fair market value of the newer printing press is $70,000. The journal entry to acquire the new printing press will required a debit to Printing Press for: A. $45,000 B. $108,000. C. $70,000. D. $62,000
Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900. Accumulated depreciation at the time of the trade-in amounted to $35,300. The new bus cost $71,000 but Willis was given a trade-In allowance of $10,600. a. What amount of cash did Willis have to pay to acquire the new bus? b. Compute the gain or loss on the disposal for financial reporting purposes. Complete this question by entering your answers in the tabs below. Required A Required B What amount of cash did Willis have to pay to acquire the new bus? Payment of cash
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You acquire a grinder priced al $65,000 by trading in a similar grinder andpaying cash for the remaining balance. Assuming that the trade-in allowanceis $11,000 and the book value of the asset traded in is $12,000, what is the cost basis of the new grinder for the computation of depreciation for tax purposes?
Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery truck having a list price of P160,000 and paid a cash difference to the dealer of P75,000. The used truck has a fair value of P60,000 on the date of the exchange. At what amount should the new truck be recorded on Parr's books? O P135,000 O P160,000 O P129.000 O P106.000

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