What is the correct price of the stock Question: A manufacturing company traded in old equipmentwith an original cost of $95,000 and accumulated depreciationof $65,000 for new equipment with a fair value of $110,000.The company received a trade-in allowance of $40,000 on theold equipment and paid the remaining $70,000 in cash.If the transaction has commercial substance, at what amountshould the company record the new equipment?

Step 1: Definition of Asset Exchange with Commercial SubstanceAn asset exchange with commercial…

Answered: Question: A manufacturing company…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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A company recently traded in an older model of equipment for a new model. The old model's book value was $216,000 (original cost of $476,000 less $260,000 in accumulated depreciation) and its fair value was $240,000. The company paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the equipment. Assume that Arca exchanged the old equipment for new equipment, paying $4,000 cash. The fair market value of the new equipment is $5,000. Journalize Arca's exchange of equipment. Assume this exchange has commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss)
A company exchanged old equipment and $18,200 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,800, respectively. Assuming that the exchange has commercial substance, the company would record a gain(loss) of:
Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine has a estimated fair market of $36,000. The transaction has commercial substance. Regarding the journal entry to record the exchange, what value will be assigned to the delivery truck? O 36,000 O 44,000 O 54,000 O 34,000 Question 17 The cost of training employees to operate newly acquired machinery are usually capitalized as part of the acquisition value of the asset. O True
Kindly help me with accounting questions
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What amount should the company record the new cooling system for this financial accounting question?
Abhaliya
A company purchased equipment valued at $285,000. It traded in old equipment for a $168,000 trade-in allowance and the company paid $117,000 cash with the trade-in. The old equipment cost $270,000 and had accumulated depreciation of $108,000. This transaction has commercial substance. What is the recorded value of the new equipment?
A company purchased equipment valued at $263,000. It traded in old equipment for a $164,000 trade-in allowance and the company paid $99,000 cash with the trade-in. The old equipment cost $250,000 and had accumulated depreciation of $100,000. This transaction has commercial substance. What is the recorded value of the new equipment? Multiple Choice $249,000. $99,000. $263,000. $164,000. $150,000.
A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971A…
Sheffield Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash. The old machine cost $478000 and had a net book value of $343000. The old machine had a fair value of $310000.Which of the following is the correct journal entry to record the exchange assuming commercial substance? Equipment 659500 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Equipment 356500 Equipment 310000 Cash 46500 Equipment 356500 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Cash 46500 Equipment 310000 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 524500

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