Lecherous Company traded a used equipment for a newerOld equipment:Original costAccumulated depreciationFair value – unknown1,000,000600,000New equipment:List priceCash price without trade inCash payment with trade in1,600,0001,400,000980,000Required:Prepare journal entry to record the exchange transaction.

SOLUTION- WORKING NOTE- GAIN ON SALE ON EQUIPMENT=CASH PRICE OF NEW EQUIPMENT -CARRYING VALUE OF…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject : Accounting
What is the deadline by which a c corporation must file a tax return
Riverbed Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Marin Ltd. The following information pertains to the exchange: Riverbed Corp. Marin Ltd. $84,200 $84,200 Equipment (cost) Accumulated depreciation 46,700 40,600 Fair value of old equipment 42,200 43,500 Cash given up 1,300 Both companies agreed that the exchange did not have commercial substance. Prepare the necessary journal entries to record the asset exchange on the books of both companies. (Credit account titles are automatically indented when the amount is entered. Do r indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Riverbed Corporation: Account Titles and Explanation Debit Credit
Sepreciation Caict ssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false MSU login O Digital University .. O Tenant Portal - Login 国Reac eBook Show Me How E Print Item Units-of-Activity Depreciation A truck acquired at a cost of $250,000 has an estimated residual value of $15,000, has an estimated useful life of 47,000 miles, and was driven 3,800 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. a. The depreciable cost b. The depreciation rate per mile c. The units-of-activity depreciation for the year 5:39 AM 36% 4°F A @ O E O 12/17/2021 24 & 4. 6. 7. 81 近

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Question Content Area Richards, Inc. exchanged a piece of equipment with an original cost of $82,000, accumulated depreciation to date of $40,000, and a fair value of $46,000 for a similar piece of equipment. Cash flows are not expected to change significantly. The newly acquired equipment had a book value of $40,000 and a fair market value of $41,000. At what value should Richard record the newly-acquired equipment? $40,000 $41,000 $46,000 $42,000
Harrison Corporation has equipment that was purchased and subsequently disposed and sold. Using the information below for each independent situation, determine; (A) Is there is a gain or loss and (B) The amount of gain or loss that would be recorded: B Situation A Machinery Cost Accumulated Depreciation Cash Received on Sale of Machinery Gain or Loss? Amount 30000 12000 15000 [Select] [Select] 40000 V 12000 22000 V [Select] [Select] С V 35000 32000 4000 V [Select] [Select] V V D 85000 71000 10 [Select] [Select] V V E 100000 85000 20000 [Select] [Select]
Item 22 Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid $ 49,700 $ 60,500 $ 14,100 The company would record the new equipment at:
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