Mary Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with a current appraised value of $18,000. Mary Co. gave the other company the piece of equipment, which had a fair value of $12,000 at the time of the exchange, and $10,000 cash. Mary Co. should record a $2,000 gain a $8,000 loss a $2,000 loss a $4,000 loss

Q: Garcia Co. owns equipment that cost $76,800, with accumulated depreciation of $40,800. Garcia sells…

A: At the time of sale of asset, gain or loss will be calculated as difference between carrying value…

Q: Garcia Co. owns equipment that cost $80,000, with accumulated depreciation of $42,400. Record the…

A: Garcia Co Journal Entries Event Particulars Debit Credit 1 Cash $49,400.00     Accumulated…

Q: On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also…

A: a. Date Account Titles Debit Credit   Machine (new) $53,000     Accumulated depreciation…

Q: Spuds Co. bought a manufacturing facility for $1,200,000. The facility included land valued at…

A: The cost assigned to the equipment = $1,200,000$700,000+$400,000+$200,000×$200,000 =…

Q: What would the journal entry to record the sale of the truck include?

A: Given information is: Dynasty Corp sold a truck for $15,000 cash. It was originally purchased for…

Q: Jamela Company acquired a welding machine with an invoice price of P5,000,000 subject to a cash…

A: As per IAS 16 , Property plant and equipment,  Cost of property plant and equipment consists of…

Q: ABC Company purchases a truck by paying $5000 cash and surrendering a piece of equipment with a book…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…

A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…

Q: Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70%…

A: Formula to compute new machine amount to be recorded:New machine amount = Sale value of the new…

Q: 2. Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny…

A: 1. Goodwill=Purchase consideration-Net assets=$400,000-$390,000=$10,000

Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…

A: This is a basket purchase so in this the fair value is used to allocate the purchase of group…

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

A: Disposal of assets: Disposal is an activity of selling the worn-out assets that is no longer in need…

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: During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

Q: Bussell Company exchanged the following assets during 2019: Feb. 1 Acquired a newer machine by…

A: When accounting is done on the p[rinciple of commercial substance, the assets value at which the…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $77,000 and…

A: Note: When there is commercial substance exist in the exchange of assets transaction, then new…

Q: Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a…

A: Asset is the value of the items owned the firm. It can be tangible or intangible in nature. It can…

Q: Lawson Company purchased equipment, on 1/10/2012. The cost was $90,000, with 10 years useful life,…

A: Depreciation under SLM method   = (cost - salvage value)/useful life  As per IFRS purchase/ sale…

Q: nge an old equipment for a new equipment.The cost and accumulated depreciation of the old equipment…

A: The adjusted net asset method is a business valuation strategy that modifies a company's reported…

Q: Macey Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in…

A: The term profit and loss (P&L) statement refers to a budget that summarizes the revenues, costs,…

Q: Cedric Company recently traded in an older model of equipment for a new model. The old model’s book…

A: Journal is the method of recording monetary business transactions in chronological order. It records…

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: The Bomb Pop Corporation sold ice cream equipment for $18,500. The equipment was originally…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: Acme Corp. entered into an exchange transaction with XYZ Co.  Acme gave XYZ used production…

A: Journal Entries: Date  Particulars Debit Credit   Vehicle 1 15,000     Vehicle 2 30,000…

Q: Simpson company purchased an asset by paying $50,000 cash and giving the seller a promissory note…

A: Tax basis of an asset refers to the purchase price of an asset less any depreciation allowance.

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: Bacon Inc., a Boston-based engineering, acquired a machinery with a price of $15,200 by trading in…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

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: Lowes Corporation sold its storage building for $86,000 cash. Lowes originally purchased the…

A: Solution:- Preparation of the journal entry to record the sale of this building as follows under:-

Q: At the beginning of the current year, Junk Company traded in an old machine having a carrying amount…

A: Total purchase consideration = Carrying value of old machinery + cash paid = P1680000 + 600000 =…

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: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…

A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…

Q: A company's old machine that cost $60,000 and had accumulated depreciation of $24,000 was traded in…

A: Correct option is B.$70,000   The new machine should be recorded at $70,000

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: 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: yvey Co. Equipment (cost)           Rwf 40,000              Rwf 40,000 Accumulated depreciation…

A: Impairment of Assets is ensuring that Asset is not carried at a amount higher than its recoverable…

Q: Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below…

A: Calculation of Initial Value of New Asset Initial value of New Asset       Fair Value of…

Q: The Jacob Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Given, Cost of Total Asset = $520,000 Appraised Value = $600,000

Q: Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A:

Q: Pauly Corporation owns 70% of Shore Company's outstanding common stock. On 01/01/20, Pauly sold a…

A:

Q: A company’s old machine that cost $60,000 and had accumulated depreciation of $24,000 was traded in…

A: Formula: Asset book value = Purchase price - Accumulated depreciation

Q: Jowee Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine…

A: Where an asset is exchanged with another asset and the new assets is expected to have commercial…