Consider each of the independent transactions below: a) The University of Belize traded an older version vehicle with a newer model at Bravo Motors. The initial cost of the older version was $50,000 and accumulated depreciation up to the time of trading, was $41,000. The fair value at the time is $13,000. As part of the trading, the University paid $42,000 in cash. b) Jacky's Car Rentals traded a piece of land for a vehicle from Ozark Company. The fair values of the land and the vehicle are $75,000 and $49,000 respectively. Jacky received $26,000 to complete the transaction. Required: Assume you provide accounting services for the University and for Jack's Car Rentals, 1. Determine gain/loss on each transaction and the FV of the new asset acquired 2. Prepare journal entries to record each of the two transactions
Consider each of the independent transactions below: a) The University of Belize traded an older version vehicle with a newer model at Bravo Motors. The initial cost of the older version was $50,000 and accumulated depreciation up to the time of trading, was $41,000. The fair value at the time is $13,000. As part of the trading, the University paid $42,000 in cash. b) Jacky's Car Rentals traded a piece of land for a vehicle from Ozark Company. The fair values of the land and the vehicle are $75,000 and $49,000 respectively. Jacky received $26,000 to complete the transaction. Required: Assume you provide accounting services for the University and for Jack's Car Rentals, 1. Determine gain/loss on each transaction and the FV of the new asset acquired 2. Prepare journal entries to record each of the two transactions
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...
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