FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown be3low: FEEBLE Co. WEAK, Inc. Equipment 4,000,000 8,000,000 Accumulated depreciation 800,000 3,200,000 Carrying amount 3,200,000 4,800,000 Fair value 3,800,000 4,400,000 Cash paid by FEEBLE to WEAK 600,000 600,000 In FEEBLE’s books, what amounts are

FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown be3low: FEEBLE Co. WEAK, Inc. Equipment 4,000,000 8,000,000 Accumulated depreciation 800,000 3,200,000 Carrying amount 3,200,000 4,800,000 Fair value 3,800,000 4,400,000 Cash paid by FEEBLE to WEAK 600,000 600,000 In FEEBLE’s books, what amounts are

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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FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown below: FEEBLECo. WEAK,Inc. Equipment 4,000,000 8,000,000Accumulated depreciation 800,000 3,200,000Carrying amount 3,200,000 4,800,000Fair value ? 4,400,000Cash paid by FEEBLE to WEAK 600,000 600,000In FEEBLE’s books, what amounts are recognized for the following?Equipment Gain (Loss)a. 5,000,000 1,200,000b. 4,400,000 600,000c. 3,800,000 1,200,000d. 3,400,000 (600,000)Use the following information for the next three questions:Altitude Company purchased a plot of land for ₱2,000,000 as a plant site. There was a small officebuilding on the plot, conservatively appraised at ₱700,000 which the company will continue to use withsome modification and renovation.The renovation had plans drawn for a factory and received bids for its construction. It rejected all bidsand decided to construct the plant itself. Below are listed additional items that management feels shouldbe included in the property, plant and equipment…
Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: Smile FrownEquipment 2, 400, 000 2, 200, 000Accumulated Depreciation 2, 000, 000 1, 750, 000Fair value of equipment 500, 000 500, 000 Required: Journal entries on the books of smile and frown
Beck Company and Train Corporation exchange equipment. Relevant information are as follows: Beck Train Equipment 2,000,000 2,500,000 Accumulated depreciation 1,125,000 1,687,500 Fair value 750,000 1,000,000 Cash payment/(received) 250,000 (250,000) Beck Company also traded an old equipment with a dealer for a newer model. Relevant information are as follows:Old equipment:Cost P1,400,000Accumulated depreciation 1,000,000Fair value 350,000Trade in value 500,000New equipment:List price P2,000,000Trade in value of old equipment (500,000)Cash payment P1,500,000Required1. Prepare journal entries related to the exchange using the following assumptions:a) Fair value approachb) Trade in value approach
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A," and Wiggins' is referred to as "Asset B." The following facts pertain to these assets.Asset AOriginal Cost $96,000Accumulated Depreciation (to date of exchange) $40,000Fair Value at date of exchange $60,000Cash paid by Hyde, Inc $15,000Asset BOriginal Cost $110,000Accumulated Depreciation (to date of exchange) $47,000Fair Value at date of exchange $75,000Cash paid by Hyde, Inc $15,000Instructions:(a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.(b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to below as “Asset A,” and Wiggins’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A 0Asset B0 Original cost $96,000 $110,000 Accumulated depreciation (to date of exchange) 40,000 47,000 Fair value at date of exchange 60,000 75,000 Cash paid by Hyde, Inc. 15,000 Cash received by Wiggins, Inc. 15,000 Instructions a. Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles. b. Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
On July 1, 2021. A exchanged its non-monetary asset (equipment) with B's non-monetary asset (machinery). The following data were made available: A: Equipment P4,400,000 Accumulated depreciation P2,000,000 Cash received from B 500,000 B: Machinery P3,700,000 Accumulated depreciation 1,800,000 Cash paid to A 500,000 The transaction lacks commercial substance. How much is cost of the new asset of A?
9 On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD’s non-monetary asset (machinery). The following data were made available: JULIA: Equipment P4,400,000 Accumulated depreciation 2,000,000 Cash received from Gerald 500,000 GERALD: Machinery P3,700,000 Accumulated depreciation 1,800,000 Cash paid to Julia 500,000 The transaction lacks commercial substance. How much is cost of the new asset of JULIA?
Major Co. exchanged equipment with Minor, Inc. Pertinent data are shown below: Major Co.Minor, Inc. Equipment 2,000,000 4,000,000 Accumulated depreciation 400,000 1,600,000 Carrying amount 1,600,000 2,400,000 Fair vaue 1,900,000 2,200,000 Cash paid by Major Co. to Minor,Inc. 280,000 280,000 Case 1: The exchange transaction has commercial substance. Provide the journal entries in the books of Major and Minor. Case 2: Use the information in the fact pattern above but assume Major Co. cannot determine the fair value of the asset given up. The exchange transaction has commercial substance. Provide the journal entries in the books of Major Co. Case 3: The exchange transaction has no commercial substance. Provide the entries in the books of Major and Major.
The information below was extracted from the books of Let Your Light Shine Enterprise: Non-current Asset Cost (GH¢) Date of Acquisition Date of Disposal Proceed from Disposal (GH¢) Machine A 30,000 03/01/15 31/08/17 18,000 Machine B 40,000 01/07/15 - - Machine C 60,000 30/09/15 01/07/17 50,000 Machine D 80,000 01/04/16 - - Additional information: a) As per the enterprise’s accounting policy, depreciation charged is pro-rated on the basis of months of use. All acquisitions and disposals are on cash basis; b) Machines A and B are depreciated at a rate of 20% on reducing balance basis while Machines C and D at 10% on straight line basis; and c) Accounts are prepared to 31st December every year. You are required to: I. Show the relevant accounts for machinery for years to 31st December, 2017; II. Show the Income statement and the statement of financial position for each of the…
Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: SmileFrown Equipment 2, 400, 000 2, 200, 000 Accumulated Depreciation 2, 000, 000 1, 750, 000 Fair value of equipment 500, 000 500, 000 Required: Journal entries on the books of smile and frown what is the rule in solving the problem?
TBB Corp. has the following information regarding three of its assets: Estimated Book Value Cash Flows Fair Value Equipment $ 35,000 $ 36,000 $ 30,000 Building $ 68,000 $ 70,000 $ 65,000 Patent $ 30,000 $ 28,000 $ 26,000 What amount of loss should be recorded by TBB due to asset impairment? Select one: a. $4,000 b. $7,000 c. $12,000 d. $10,000 e. $6,000
Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of LoBianco Company. The following information pertains to the exchange. Arruza Co. LoBianco Co. Equipment (cost) $28,0000 0 $28,0000 Accumulated depreciation 0 19,0000 0 10,0000 Fair value of equipment 0 12,5000 0 15,5000 Cash given up 0 3,0000 0 0 Instructions a. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. b. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.

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bartleby, a Learneo, Inc. business

	FEEBLE Co.	WEAK, Inc.
Equipment	4,000,000	8,000,000
Accumulated depreciation	800,000	3,200,000
Carrying amount	3,200,000	4,800,000
Fair value	3,800,000	4,400,000
Cash paid by FEEBLE to WEAK	600,000	600,000

Equipment		Gain (Loss)
a. 5,000,000		1,200,000
b. 4,400,000		600,000
c. 3,800,000		1,200,000
d. 3,400,000		(600,000)