Exchange of AssetsAshton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashtonalso received $1,400 cash. In the entry to record this exchange, Ashton should record a:Oa. $2,000 lossOb. $2,000 gainOc. $600 lossOd. $600 gainLower of Cost or MarketMoore Company uses the LIFO inventory method and carries Product A in inventory on December 31, 2016, at its unit cost of $9.50. Because of a sharp decline indemand for the product, the selling price was reduced to $10.00 per unit. Moore's normal profit margin on Product A is $2.00, disposal costs are $1.00 per unit and thereplacement cost is $6.50.Under the lower of cost or market rule, Moore's December 31, 2016, inventory of Product should be valued at a unit cost of:Oa. $9.00Ob. $6.50Oc. $9.50Od. $7.00

Book value of asset given = Cost - Accumulated depreciation = $30000 - $16000 = $14000

Exchange of Assets Ashton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashton also received $1,400 cash. In the entry to record this exchange, Ashton should record a: Oa. $2,000 loss Ob. $2,000 gain Oc. $600 loss Od. $600 gain

Exchange of Assets Ashton Company exchanged a nonmonetary asset with cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashton also received $1,400 cash. In the entry to record this exchange, Ashton should record a: Oa. $2,000 loss Ob. $2,000 gain Oc. $600 loss Od. $600 gain

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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