Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 11, Problem 11.31E
a.
To determine
Gain or loss on the exchange after bringing
Given Information:
Cost of machine acquired on January 1, 2010 is $260,000.
Useful life of machinery is 10 years.
Scrap value of the machinery is $20,000.
On August 1, 2015; old machine was exchanged for new machine.
Market value of new machinery is $157,250.
Cash received mounted to $27,750.
Fair value of old machine is $185,000.
b.
To determine
To prepare:
Given Information:
Cost of machine acquired on January 1, 2010 is $260,000.
Useful life of machinery is 10 years.
Scrap value of the machinery is $20,000.
On August 1, 2015; old machine was exchanged for new machine.
Market value of new machinery is $157,250.
Cash received mounted to $27,750.
Fair value of old machine is $185,000.
c.
To determine
To prepare: journal entry to record exchange if there is no commercial substance in the exchange.
Given Information:
Cost of machine acquired on January 1, 2010 is $260,000.
Useful life of machinery is 10 years.
Scrap value of the machinery is $20,000.
On August 1, 2015; old machine was exchanged for new machine.
Market value of new machinery is $157,250.
Cash received mounted to $27,750.
Fair value of old machine is $185,000.
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Chapter 11 Solutions
Intermediate Accounting
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