How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment has an original cost of P1,500,000, accumulated depreciation of P600,000, and fair value of P1,000,000. The new equipment obtained through exchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity

Q: A and B have an exchange with no commercial substance. The equipment given up by A has a historical…

A: Exchange of Assets It is important to recognize gain or loss at the time of exchange of assets…

Q: A fixed asset with a cost of $25,556 and accumulated depreciation of $23,000 is traded for a similar…

A: Solution: Cost at which new equipment will be recorded = Fair market value of the new equipment =…

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: A fixed asset with a cost of $50,207 and accumulated depreciation of $42,676 is traded for a similar…

A: The Numerical has covered the concept of recognized loss The Book Value of the asset is computed by…

Q: A fixed asset with a cost of $29,006 and accumulated depreciation of $26,105 is traded for a similar…

A: Given that: Cost of fixed asset = $29006 Accumulated Depreciation = $26105 Fair market price of new…

Q: Below is the information relative to an exchange of assets by Bramble Corporation. The exchange…

A: Exchange of assets:  Sometimes the companies exchange their old asset for new assets. This is done…

Q: Sullivan Corp. exchanged one of their buildings (Building 24), which, on the date of exchange, has…

A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…

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: Alamos Co, exXchanged equipment and $18,500 cash for similar equipment. The book value and the fair…

A: Accounts Titles  Debit Credit Equipment - new [ Fair value + Cash] (91500+18500) $110000…

Q: On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of…

A: In the books of Robers Company: Value of equipment = Fair value of equipment - Cash paid  = $75,000…

Q: elow is the information relative to an exchange of assets by Marigold Corporation. The exchange…

A: Since the Fair value (FV) is lower than the Book value of the asset and thus it incurs loss. So,…

Q: The following information relates to an exchange of assets by Wharton Company. The exchange lacks…

A: Lack of Commercial substance on exchange of Assets If  no commercial substance exists on exchange of…

Q: Asset Traded for Similar Asset A printing press priced at a fair market value of $606,400 is…

A: When one assets is given in exchange of new assets is bought in , then price at which old assets is…

Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…

A: The asset is considered as something that an investor buys with an intention of making income from…

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: Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000,…

A: Journal entries are the primary reporting of transactions occurring in the business.

Q: PURCHASE PRICE

A: An asset is recorded at the fair value price on the date when it is acquired. Generally, the journal…

Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…

A: Consolidation is the merger of two or more entities where one large company acquire share capital of…

Q: On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…

A: The following calculations are done for Al-Quds Company.

Q: of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was…

A: As fair value is given, goodwill under fair value method:-Goodwill=Consideration paid/%…

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

A: This question deals with the IAS 16 "Property plant and equipment". When non monetary asset is…

Q: On March 1Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…

A: The asset acquired by the company is recorded at fair value of the asset in the books of the…

Q: Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to…

A: An entity can purchase of sale of asset in exchange of cash or its own asset or a combination of…

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: 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: Brooks LLC exchanged machinery with an appraised value of $4,600,000, a recorded cost of $7,200,000…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

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: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…

A:

Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to…

A: The journal entries for recording exchange of assets in both H Inc and W Inc when the assets have…

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: air value of P1,000,000 and carrying value of P1,200,000.  DEF paid P700,000 cash to ABC.   If…

A: Exchange has commercial substance is when expected future cash flow will be affected due to the…

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

Q: A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar…

A: Correct option is $38742

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: 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: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

A: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

Q: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…

A: Note: When commercial substance exists in the exchange of assets transaction, new assets are…

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: Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value…

A: Introduction: The book value of a firm is the amount of money that shareholders would get if assets…

Q: On july 1, 2021, JULIA exchanged its-non-monetary asset (equipment) with GERALD's non-monetary asset…

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

Q: XYZ Company exchanges the rights to distribute a product in Brisbane which have a carrying amount of…

A: The question is related to acquisition of Intangible asset in exhange for another Intangible asset.…

Q: Prince Company and Albert Company agreed to exchange tractor trailers. Information relating to these…

A: The asset is considered as something that an investor buys with an intention of making income from…