COPS Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost , $550,000) for a molding machine owned by Water Company. The molding machine is carried in Water's Company books at a cost of $240,000 with an accumulated depreciation of $83,000 at the time of exchange. Assume that no cash is involved in the transaction, and the fair value of the automobile is not readily determinable. The fair market value of the molding machine is $172,800. How much is the gain or loss on the exchange of Cool Company

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: Sheridan Company traded machinery with a book value of $746650 and a fair value of $685000. It…

A: Commercial substance: It exists in business transactions where the outcome is anticipated to cause…

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: 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: 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: Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a…

A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…

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: Bryant Inc. and Rizzo Co. have an exchange that lacks commercial substance. The asset given up by…

A: An asset is a monetary resource that an individual, corporation, or government owns or controls in…

Q: A Corp. sold a machinery to a buyer for P1,900,000 on January 1, 2021. Because of the entity’s…

A: Lease -  Lease agreements are contracts or instruments that transfer property from one person to…

Q: On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company.…

A: ''Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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

A: Value of the pickup trucks = Fair value of equipment + Cash paid

Q: On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company.…

A: If the asset is acquired in exchange of another assets, then the cost value of acquired asset…

Q: Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a…

A: Formula: Gain = Fair value of B vehicle - Company A machine value

Q: Bella company entered into an exchange agreement of exchanging its equipment for two pickup…

A: In the case of an exchange, the new asset should be recorded at its fair value.

Q: Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a…

A: Here in this question, we are required to determine how much gain or loss should be recorded by…

Q: Hoyle Company traded machinery with a book value of $680,000 and a fair value of $720,000. In…

A: Book value (also known as the carrying value) is the amount at which an asset is being reported in…

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

A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…

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

A: When there is  no commercial substance, asset should be recorded at the book value of asset given…

Q: King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair…

A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…

Q: Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a…

A: Here PFRS will apply

Q: Cheyenne Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for…

A: The verification of the percentage of the cash received whether it exceeds 25% of the fair value of…

Q: Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as…

A: In case of barter which has commercial substance, PPE has to be recorded at fair value of the asset…

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: Italy Corp. exchanged Building 24, which has an appraised value of $1,700,000; a cost of $2,800,000…

A: Given that, Building 24 Data -   appraised value of building  $1,700,000 cost of building $2,800,000…

Q: Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair…

A: When ever an Equipment has a commercial substance then the Equipment is to be recorded at Fair value…

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: ABC Inc. and XYZ Co. have an exchange with no commercial substance. The asset given up by ABC Inc.…

A: An exchange has commercial substance if an entity expects the likelihood, the timing, or quantity of…

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: 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: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…

A: Recorded value of new Truck = Fair value of the new Truck received  where, Fair value of the new…

Q: Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery…

A: Solution: Amount at which new truck should be recorded on Parr's book = Cash paid + Fair value of…

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

A: Formula: Realized gain = Fair value - Asset book value.

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: C Inc. and D Co. have an exchange with no commercial substance. The asset given up by C Inc. has a…

A: If exchange has no commercial substance, there will be no profit or loss and exchange will be…

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

A: The old assets given up by the company are recorded at book value of the particular asset.

Q: Cullumber Company traded machinery with a book value of $525000 and a fair value of $1025000. It…

A: The company is required to record  a gain in the books of accounts for the exchange of assets if the…

Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…

A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…

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

A: Value of assets received = Book value of assets Given + Cash paid/Value of assets given

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

A: An exchange between two parties means when one party provides something, the other party also…