On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to below as “Asset A", and Birzeit's is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Al-Quds Company Birzeit Compan (Asset A) (Asset B) Original cost $200,000 $100,000 Acc. dep. to date of exchange 90,000 30,000 Fair value at date of 160,000 exchange Cash received 30,000 Cash paid 30,000 The recognized gain by Al-Quds Company

On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to below as “Asset A", and Birzeit's is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Al-Quds Company Birzeit Compan (Asset A) (Asset B) Original cost $200,000 $100,000 Acc. dep. to date of exchange 90,000 30,000 Fair value at date of 160,000 exchange Cash received 30,000 Cash paid 30,000 The recognized gain by Al-Quds Company

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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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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Bonita Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $371,700. The estimated fair values of the assets are land $70,800, building $259,600, and equipment $94,400. At what amounts should each of the three assets be recorded? (Do not round intermediate calculations and round final answers to O decimal places e.g. 58,971.) Recorded Amount Land Building $ Equipment $
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ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount recorded by ACME for the Building? a. $110,000 b. $20,000 c. $80,000 d. $100,000
On july 1, 2021, JULIA exchanged its-non-monetary asset (equipment) with GERALD's non-monetary asset (machinery). the following data were made available: JULIA: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 500,000 GERALD: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The transaction lack commerical substance. How much is the cost of the new asset of JULIA?
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