Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 11, Problem 11.30E
To determine
To prepare:
Given Information:
Cash paid in exchange of chocolate mixing machine is $31,500.
Fair value of chocolate mixing machine exchanged is $562,500.
Book value of machine is $500,000.
Historical cost of the machine is $1,135,000.
Fair value of new mixing machine is $594,000.
Book value of new machine is $380,000
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On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:
Phifer's Asset
$ 155,000
75,000
71,500
To equalize the exchange, Phifer paid Robers $8,000 in cash.
Original cost
Accumulated depreciation
Fair value
Required:
Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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Journal entry worksheet
Subject :- Accounting
Chapter 11 Solutions
Intermediate Accounting
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