1.
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 the disposal of machinery sold for $18,250.
2.
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.
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.
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Chapter 10 Solutions
FUND ACCOUNTING PRINCIPLES BUNDLE
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