China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $17,000 and $10,000 (original cost of $35,000 less accumulated depreciation of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $8,000 in cash to Midwest Chicken. At what amount did China Inn record the delivery truck? How much gain or loss did China Inn recognize on the exchange?

Q: Caleb Co. owns a machine that had cost $42,400 with accumulated depreciation of $18,400. Caleb…

A: Journal entry: It refers to the recording of the transaction and event takes place in the business…

Q: Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old…

A: If the transaction has commercial substance, new asset will be recorded at its fair value and any…

Q: machine had cost of P600,000, book value of P300,000 and market value of P320,000 at the time of…

A: According to the Security Exchange Commission -Fair Value refers to the price received to sell an…

Q: Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in…

A:

Q: Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange…

A: Loss on exchange=Warehouse(old)-Accumulated depreciation-Fair value=$100,000-$52,000-$43,000=$5,000

Q: COPS Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love…

A: Book value of asset given up = P12,000 Cash paid = P4,000 Amount to be recorded by Love Inc. = Book…

Q: Manama Co, and Muharraq Co. have an exchange with no commercial substance. The asset given up by…

A: Amount Manama should record for the assets received = Book value of assets given + cash paid

Q: Davis Company exchanged an old machine with a cost of $120,000, total accumulated depreciation of…

A: The exchange refers to the situation where old assets are exchanged with new assets. The new…

Q: Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has…

A: For sale of used Truck Particulars Debit ($) Credit ($) Bank A/c 3,000   Accumulated…

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: 1.

Q: Karlene Company and Erika Company are fuel oil disti ers. To facilitate the delivery of oil to…

A: Concept of Valuation of Inventory

Q: 2. Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny…

A: 1. Goodwill=Purchase consideration-Net assets=$400,000-$390,000=$10,000

Q: Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from…

A: Formula: Gain on exchange = Cash received on exchange + fair value of computer - Undepreciated.…

Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…

A: GIVEN   The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…

Q: Bro exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying…

A: Assets can be purchased in exchange of other assets and in addition of some cash, but the criteria…

Q: Pensacola Inc. purchased equipment on January 1, 2016 for $135,000.After 3 years Pensacola exchanged…

A: Cost basis means the value of an asset for tax purposes, generally, the purchase price of the asset.…

Q: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

Q: Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000…

A: When a fixed asset is exchanged for another fixed asset and the exchange has commercial substance,…

Q: Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has…

A: Solution: Asset received in exchange will be recorded at book value of asset given up plus any cash…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $77,000 and…

A: Note: When there is commercial substance exist in the exchange of assets transaction, then new…

Q: During the year, Endeavor Co. received an intangible asset from Allmight Co. in an exchange…

A: INTANGIBLE ASSETS:-  Intangible assets are those assets which don't have any physical substance…

Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…

A: As per IAS 16, Property, plant and Equipment If asset is purchased for value which includes payment…

Q: ABC Co. exchanged a used machine with XYZ Co. for a similar machine with less use. ABC Co. machine…

A: When assets are acquired through exchange with similar assets that are considered as non-monetary…

Q: Acme Corp. entered into an exchange transaction with XYZ Co.  Acme gave XYZ used production…

A: Journal Entries: Date  Particulars Debit Credit   Vehicle 1 15,000     Vehicle 2 30,000…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $600,000.…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN's non- monetary asset…

A: The exchange has significantly changed the cash flows of each entity. the value of new assets  will…

Q: Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: [The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged…

A: As per the guidelines only one question is allowed to be solved. Please upload remaining question…

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: Since multiple subparts are posted, only the first three will be answered.

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Commercial Substance: If there is a change in future cash flow of the business as result of business…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: amount of loss

A: Carrying amount of the old machine P16,800 Cash difference paid P6,000 Total cash price of the…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Calculate the amount at which Calaveras value the pickup trucks.

Q: in the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had…

A: Tax basis of new building = (Cost of old building - accumulated depreciation) + Cash paid

Q: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: The carrying value of an asset is the value at which the company records the asset in its balance…

Q: At the beginning of the current year, Junk Company traded in an old machine having a carrying amount…

A: Total purchase consideration = Carrying value of old machinery + cash paid = P1680000 + 600000 =…

Q: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…

A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…

Q: On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated…

A: The non cash assets acquired in exchange process is recorded at fair market value in the accounting…

Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…

A: Amount Bonnie should record for the asset received=Book value of asset given up+cash…

Q: Foxtrot Co, exchanged equipment and $17,100 cash for similar equipment. The book value and the fair…

A: As per IAS 16 of property plant and equipment of international financial reporting standards.  If…

Q: Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: The carrying value of an asset is the value at which the company records the asset in its balance…

Q: 'he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: When fixed assets is exchange , then fair value of assets exchange should be determined and compared…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000.…

A: Red Rock Bakery purchased land, building & equipment all for $300,000 and the fair values of…