Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income. The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

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Answer 1

Question

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

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Answer 2

Question

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

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Answer 3

Question

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

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Answer 4

Question

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

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Answer 5

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

Answer 6

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

Answer 7

Chapter 11, Problem 11.31E

a.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The gain or loss on the exchange after bringing accumulated depreciation up to the date of transaction.

Answer 8

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

Answer 9

b.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The Journal entry to record the exchange

Answer 10

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

Answer 11

c.

To determine

Concept Introduction:

Exchange of asset without commercial substance does not recognizes any gain or loss on and the asset is carried at book value, as a result unrecognized gain reduces the depreciation base of the new asset, thus future depreciation charged would be lower and results in increase of income.

The journal entry to record exchange if there is no commercial substance in the exchange.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

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