Exchanging plant assets: Many times, newer plant assets are exchanged with older ones. Accounting for the exchange of assets depends on whether the exchange transaction has commercial substance. If an exchange has commercial substance, a gain or loss resulting from such exchange would be the difference between the book value of the asset and the market value of the asset. The entries to record the disposal of machinery sold for $18,250.
Exchanging plant assets: Many times, newer plant assets are exchanged with older ones. Accounting for the exchange of assets depends on whether the exchange transaction has commercial substance. If an exchange has commercial substance, a gain or loss resulting from such exchange would be the difference between the book value of the asset and the market value of the asset. The entries to record the disposal of machinery sold for $18,250.
Exchanging plant assets: Many times, newer plant assets are exchanged with older ones. Accounting for the exchange of assets depends on whether the exchange transaction has commercial substance. If an exchange has commercial substance, a gain or loss resulting from such exchange would be the difference between the book value of the asset and the market value of the asset.
The entries to record the disposal of machinery sold for $18,250.
2.
To determine
Concept Introduction:
Exchanging plant assets: Many times, newer plant assets are exchanged with older ones. Accounting for the exchange of assets depends on whether the exchange transaction has commercial substance. If an exchange has commercial substance, a gain or loss resulting from such exchange would be the difference between the book value of the asset and the market value of the asset.
The entries to record disposal assuming the new machine value is $60,200 and a trade-in allowance of $25,000.
3.
To determine
Concept Introduction:
Exchanging plant assets: Many times, newer plant assets are exchanged with older ones. Accounting for the exchange of assets depends on whether the exchange transaction has commercial substance. If an exchange has commercial substance, a gain or loss resulting from such exchange would be the difference between the book value of the asset and the market value of the asset.
The entries to record disposal when the machine is traded with the new machine having a cash price $60,200 and a trade-in allowance of $15,000.
The fiscal 2010 financial statements for Neptune, Inc
report revenues of $14,892,615, net operating profit
after tax of $987,625, net operating assets of
$6,124,587. The fiscal 2009 balance sheet reports net
operating assets of $5,995,633. What is Neptune s 2010
net operating profit margin?
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