In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for a dissimilar used machine and paid a cash difference of P32,000. The market value of the old packaging machine was determined to be P140,000. How much is the cost of the newly acquired machine and the amount of gain or loss, respectively, that Dean should record on this exchange?

Q: Rocky Company trades equipment with a book value of $24,970 for new equipment with a list price of…

A: Step 1: Definition of Trade-in:Trade-in is like exchange wherein an asset is acquired by exchanging…

Q: On September 1, a piece of office equipment was sold for P2M. The office equipment had an original…

A: Gain on sale of office equipment is the excess amount received by way of sale over the carrying…

Q: Provide Correct answer of this one

A: To determine the gain or loss on the trade-in of equipment, we need to compare the book value of the…

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: 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: Swifty Corporation purchased equipment for $43200. Sales tax on the purchase was $2592. Other costs…

A: The cost of fixed assets  includes several components. Here are the various elements that make up…

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: Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown Company will…

A: An exchange is said to have commercial substance if the risk, timing and amount of cash flows…

Q: then the original cost of the plant asset must have been what?

A: Original Cost of Plant asset is the amount paid at the time of acquisition of plant and the amount…

Q: pharoah manufacturing has equipment that costs $657000 and has accumulated depreciation of $285000.…

A: Gain: It implies a gradual increase in the value of investments or assets held by the business. The…

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: Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000.…

A: The objective of the question is to determine the cash amount Willis Bus Service had to pay to…

Q: Subasta Corporation was able to acquire second hand goods worth P100,000 in an auction. The goods…

A: Irrelevant cost is the cost which does not relevant in decision making. It can be past cost or the…

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: In 2015, DimDung Company acquired production machinery which now has a book value of ¥745,000. The…

A: The objective of the question is to determine the carrying value of the machinery after an…

Q: During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of…

A: Exchange of assets refers to transactions where one entity swaps one asset for another. Accounting…

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: Cedric Company recently traded in an older model of equipment for a new model. The old model's book…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

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: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

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: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

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: 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: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…

Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…

A: 1.

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: 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: Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900.…

A: To calculate the amount of cash Wills had to pay to acquire the new bus, we need to consider the…

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: 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: 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: A company recently traded in an older model of equipment for a new model. The old model's book value…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

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: 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: Bremer Company made the following exchanges of assets during 2019: Prepare Bremer's journal entry…

A: According to the logic of a journal entry, every business transaction should be documented in at…

Q: A machine was purchased on 1st January 2015 at a cost of OMR 120,000. At the time of Sale, the…

A: The machine or machinery is used by a company for several years, and therefore, as per the matching…

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: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated…

A: The non cash assets acquired in exchange process is recorded at fair market value in the accounting…

Q: In December 2005, SHOWEE Company exchanged an old machine, with a cost P6,000,000 and 50%…

A: Here discuss about the details of exchange of machinery which can be incurred the exchange price…