Requirement 1. If the fair value of the used truck is P320,000, the cost of the new truck is 2. If the fair value of the used truck is P320,000, the gain or loss on trade-in is 3. If the fair value of the old truck is not determinable, the cost of the new truck is 4. If the fair value of the old truck is not determinable, the gain/loss on trade-in is

Requirement 1. If the fair value of the used truck is P320,000, the cost of the new truck is 2. If the fair value of the used truck is P320,000, the gain or loss on trade-in is 3. If the fair value of the old truck is not determinable, the cost of the new truck is 4. If the fair value of the old truck is not determinable, the gain/loss on trade-in is

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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A machine cost $1272000, has annual depreciation of $212000, and has accumulated depreciation of $1007000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $291500, it is exchanged for a machine with a fair value of $1431000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at O $1139500. O $1431000. O $1298500. O $1404500.
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4 Required information [The following information applies to the questions displayed below] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,000 (original cost of $36,000 less accumulated depreciation of $20,000) and a fair yalue of $9,800. Kapono paid $28,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $540,000 and a fair value of $780,000. Kapono paid $58,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? 2. Assume the fair value of the old tractor is $22,000 instead of $9,800. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Complete this question by entering…
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Please don't provide answers in image formate thank you. A farmer buys a new tractor for $152,000 and assumes that it will have a trade-in value of $87,000 after 10 years. The farmer k the tractor. (A) Find a linear model for the depreciated value V of the tractor t years after it was purchased. V=-6500t + 152000 (B) What is the depreciated value of the tractor after 6 years? The depreciated value of the tractor after 6 years is $
ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 6. PLEASE ANSWER AND SHOW SOLUTION
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A company purchased raw materials of GH¢50000 during the 2020 production year. During the 2021 production period, it has purchased new materials of GH¢100000 for its changed product rendering the old material non-usable for production. Which of the following statement is correct?A. The total material cost of production is GH¢150000B. The old material cost is sunk but still relevantC. The old material cost is sunk cost and direct cost to the productD. The old material cost is sunk and a period cost
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ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 6. PLEASE ANSWER AND SHOW SOLUTION