jag Wildhorse Products purchased a machine for $75200 on July 1, 2025. The company intends to depreciate it over 8years using the double-declining balance method. The salvage value is $5800. Depreciation for 2026 to the closestdollar is$17600.$16450.• $9400.$37600. In a nonmonetary exchange of plant assets, accounting recognition should not be given toa portion of the gain when the exchange has no commercial substance and cash is paid (when the cash paid isless than 25% of the fair value of the exchange).a gain when the exchange has commercial substance.a portion of the gain when the exchange has no commercial substance and cash is received (when the cashreceived is less than 25% of the fair value of the exchange).a loss when the exchange has no commercial substance.

Name: jag Wildhorse Products purchased a machine for $75200 on July 1, 2025.
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Description: jag Wildhorse Products purchased a machine for $75200 on July 1, 2025. The company intends to depreciate it over 8years using the double-declining balance method. The salvage value is $5800. Depreciation for 2026 to the closestdollar is$17600.$16450.

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Wildhorse Products purchased a machine for $75200 on July 1, 2025. The company intends to depreciate it over 8 years using the double-declining balance method. The salvage value is $5800. Depreciation for 2026 to the closest dollar is $17600. $16450. O $9400. $37600.

Wildhorse Products purchased a machine for $75200 on July 1, 2025. The company intends to depreciate it over 8 years using the double-declining balance method. The salvage value is $5800. Depreciation for 2026 to the closest dollar is $17600. $16450. O $9400. $37600.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10MC

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When accounting for asset exchanges, O when an exchange lacks commercial substance, either a gain or loss may be recognized. if the fair values of either the asset given up or the asset received cannot be ascertained, then the Board of Directors may assign an arbitrary value. O if a transaction lacks commercial substance, it is not recorded. an asset cannot be recognized at more than its fair value.
When cash is involved in an exchange having commercial substance _________________. a. a gain or loss is computed by comparing the fair value of the asset received with the fair value of the asset given up b. only gains should be recognized c. gains or losses are recognized in their entirety d. only losses should be recognized
Accounting recognition should be given to the gain realized on a non-monetary exchange of plant assets except when the exchange has Select one: a. commercial substance and additional cash is paid. b. no commercial substance and additional cash is paid. C. All of these cause recognition of a gain. d. commercial substance and additional cash is received.
This transfer of financial asset does not result to derecognition. A. The transferred asset has been isolated from the transferor (put beyond reach of the transferor and its creditors) B. The transferees have obtained the right to pledge or exchange either the transferred assets or beneficial interests in the transferred assets C. The transferor is obliged to repurchase the transferred financial asset D.The transferor does not maintain effective control over the transferred assets through an agreement to repurchase or redeem them before their maturity
If an exchange lacks commercial substance, and no cash is received, a company should: a. Defer Gain b. Recognize Loss c. Both d. Neither
Time left 0:30:26 For a non-monetary exchange of plant assets, accounting recognition should not be given to a O a. loss when the exchange has commercial substance O b. gain when the exchange has commercial substance O c. loss when the exchange has no commercial substance Oc. O d. gain when the exchange has no commercial substance
Indicate whether each of the following statements is true or false. 1. Assets purchased on long-term credit contracts should be recorded at the present value of the consideration exchanged. 2. Companies account for the exchange of non-monetary assets on the basis of the book value of the asset given up or the fair value of the asset received. 3. Under IFRS, all gains on non-monetary exchanges are recognized, regardless of whether the transaction has commercial substance or not.
PAS 16 states that if an exchange transaction causes a significant change in cash flows, the transaction has commercial substance. In transactions of this type, at what amount should the entity record the asset received? Book Value plus Boot Book Value Fair Value inminsic value
When should a transfer of receivables be recorded as a sale? A) The buyer surrenders controlof the receivables to the seller. B) The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeeem them prior to their maturity. C) The transferee cannot pledge or exchange the transferred assets. D) The transferred asstes are isolated from the transferor.
true or false ___________ if the fair value of the asset given u[ in exchange transaction that has a commercial substance is not realibly determinable, the asset receive is measured at its fair value, adjusted for any cash received or paid in the exchange. _________ If a party in an exchange transaction recognizes gain, this presupposes a loss on the part of other contracting party _________ PPE acquired by issuing securities are always recognized at the fair value of the securities issued. ___________ A PPE from donation is initially recognized at the fair value of the asset given up
Indicate whether each of the following statements is true or false. Companies account for the exchange of non-monetary assets on the basis of the book value of the asset given up or the fair value of the asset received. Under IFRS, all gains on non-monetary exchanges are recognized, regardless of whether the transaction has commercial substance or not.
Which of the following nonmonetary exchange transactions may result in recorded gains or losses? A) Exchange of assets with a difference in future cash flows. B) Exchange of assets with no difference in future cash flows. C) Exchange of an equivalent interest in similar productive assets that causes the companies involved to remain in essentially the same economic position. D) Exchange of products by companies in the same line of business with no difference in future cash flows.