MAP Ltd acquired a Machine from FAT Ltd for the following consideration: o Cash $65 000, o Land in the books of MAP Ltd the land is recorded at its cost of $750 000. It has a fair value of $700 000. MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part of the Machine acquistion Calculate the acquisition cost of the Machine Provide the journal entries that would appear in MAP Ltd.’s books to account for the acquisition of the Machine.
MAP Ltd acquired a Machine from FAT Ltd for the following consideration: o Cash $65 000, o Land in the books of MAP Ltd the land is recorded at its cost of $750 000. It has a fair value of $700 000. MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part of the Machine acquistion Calculate the acquisition cost of the Machine Provide the journal entries that would appear in MAP Ltd.’s books to account for the acquisition of the Machine.
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 5P: Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1....
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MAP Ltd acquired a Machine from FAT Ltd for the following consideration:
o Cash $65 000,
o Land in the books of MAP Ltd the land is recorded at its cost of $750 000.
It has a fair value of $700 000.
MAP Ltd also agrees to assume the liability of the FAT Ltd bank loan of $95 000 as part of
the Machine acquistion
Calculate the acquisition cost of the Machine
Provide the
for the acquisition of the Machine.
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