Textile manufacturer Ivanhoe Corp. exchanges robotic equipment with an original cost of $22,400 and a carrying amount of $12,400 with the equipment rental company Bridgeport Corp. The equipment that is received in exchange from Bridgeport has an original cost of $36,100 and a carrying amount of $16,600, performs different functions, and has a fair value of $22,000. The individual shareholder owned only 40% of the shares of each company. Because they are closely held companies, they both follow ASPE. Assume that there is independent evidence to support the value of the equipment. Prepare the journal entries for both companies to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Ivanhoe Corp. Account Titles and Explanation Equipment (New) Debit Credit

Textile manufacturer Ivanhoe Corp. exchanges robotic equipment with an original cost of $22,400 and a carrying amount of $12,400 with the equipment rental company Bridgeport Corp. The equipment that is received in exchange from Bridgeport has an original cost of $36,100 and a carrying amount of $16,600, performs different functions, and has a fair value of $22,000. The individual shareholder owned only 40% of the shares of each company. Because they are closely held companies, they both follow ASPE. Assume that there is independent evidence to support the value of the equipment. Prepare the journal entries for both companies to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Ivanhoe Corp. Account Titles and Explanation Equipment (New) Debit Credit

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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