Mirabel Company has an old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine that had a list price of P800,000.  However, the new machine could be purchased without trade in for P780,000 cash. Mirabel paid P500,000 cash in the exchange.  At how much should Mirabel record the newly acquired machine

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: 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: Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same…

A: Exchange of assets means when one asset is being exchanged with another asset. Whether commercial…

Q: machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of…

A: According to the Security Exchange Commission -Fair Value refers to the price received to sell an…

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: Part A On 3 January 2022, Xavier Ltd exchanged a machine with Carey Ltd. with a cost of $430 000…

A: Fixed assets are treated as Real Account in Accounting. So when purchase fixed assets then they are…

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: 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: JK Corp traded some used Machinery with book value of $60,000 (accumulated depr $50,000) and a FMV…

A: Formulas:

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: Question: A company purchased equipment valued at $238,000. It traded in old equipment for a…

A: When fixed assets are being purchased for the business, it can be for cash or by exchanging some old…

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: Francis Company purchased a machine for $24, 000; the seller is holding the note. Francis Company…

A: Property, plant, and equipment refers to those assets which are long-term in nature and are used by…

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: Bryn Enterprises exchanged old trucks( cost $70000 less $27000 accumulated depreciation )plus cash…

A: In the case of exchanging an old asset to acquire new asset, the net of asset cost (by deducting…

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: Reason Inc. sold its old equipment with original cost of P2,000,000 and accumulated depreciation of…

A: Solution Working note  Carrying amount of equipment = original cost - accumulated depreciation. =…

Q: Bryn Enterprises exchanged old trucks (cost $70,000 less $27,000 accumulated depreciation) plus cash…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

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: A machine cost $229,000, has annual depreciation expense of $45,800, and has accumulated…

A: working notes    1. ($45,800× 3/12) = $11450   2. ($114,500 +$11450) = $125950

Q: 1. Denver, Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000…

A: Solution Dear student as per Q&A guideline we are required to answer the first question only .…

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: 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: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…

Q: Arlington Company sold equipment for $90,000 cash. The equipment had an original cost of $180,000…

A: When Equipment is sold then we have to debit cash account and credit equipment account, accumulated…

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: 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: Want Answer please provide

A: Step 1: Introduction to Gain or Loss on the Sale of an Asset:Long-term assets are generally carried…

Q: Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model…

A: In case of asset have commercial substance we record new asset at fair market value plus cash paid…

Q: Question: A company purchased equipment valued at $238,000. It traded in old equipment for a…

A: INTRODUCTION: The process of entering transactions into an accounting journal is known as a journal…

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: amount of loss

A: Carrying amount of the old machine P16,800 Cash difference paid P6,000 Total cash price of the…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…

A: In a situation where commercial substance exists, any gain or loss on exchange of assets shall be…

Q: Want to give you a correct answer

A: To determine the gain or loss recorded by Rocky Company, we need to compare the book value of the…

Q: Need Help with this Question

A: Step 1: Introduction of Gain or Loss on the Sale of an Asset: Long-term assets are generally carried…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.