Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer with a fair value of $3,300. Navajo also paid $500 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)
Q: ullumber Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for…
A: Calculation of Gain or Loss: Cullumber Co. Riverbed Co. Fair Value of Old Equipment $18,000…
Q: Manama Co, and Muharraq Co. have an exchange with no commercial substance. The asset given up by…
A: Amount Manama should record for the assets received = Book value of assets given + cash paid
Q: A company acquires $45,000 in new web servers. In exchange, the company trades in old web servers…
A: Journal: Recording of a business transactions in a chronological order.
Q: Parr Company traded in a used delivery truck with a carrying amount of P54,000 fora new delivery…
A: If exchange have commercial substance, the value of new assets will be recorded at faie value of…
Q: On the first day of the fiscal year, a new walk-in cooler with a list price of $51,300 was acquired…
A: When new assets has been purchased and old assets has been given in exchange , then we need to find…
Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…
A: 1.
Q: Below is the information relative to an exchange of old equipment for new equipment by Ehrlich…
A: As per provisons of IFRS, where the exchange of assets takes place then the new asset shall be…
Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to…
A: GAAP: Generally Accepted Accounting Principles.
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: Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from…
A: Formula: Gain on exchange = Cash received on exchange + fair value of computer - Undepreciated.…
Q: he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Line Company exchanged a car from its inventory for a computer system to be used in its…
A: Solution: In case of exchange of assets having commercial substance, assets received and asset given…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…
A: GIVEN The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…
Q: Bro exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying…
A: Assets can be purchased in exchange of other assets and in addition of some cash, but the criteria…
Q: Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a…
A: Formula: Gain = Fair value of B vehicle - Company A machine value
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: When exchange lack commercial substance exist, the exchange of assets would be recorded at cost of…
Q: Cedric Company recently traded in an older model of equipment for a new model. The old model’s book…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: New Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair value…
A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…
Q: Briyanne, Inc. purchased a computer for RM5,000. During 2016 and 2017, the company recorded total…
A: solution concept If a transaction has commercial substance The asset acquired shall be recorded at…
Q: Zhane Company exchanged a car from its inventory for a computer system to be used in its…
A: Amount Paid for the exchange = Fair Value of computer system – Carrying amount of Car – Gain on…
Q: Mary Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with…
A: Accumulated depreciation on equipment = Cost of equipment x depreciation % = $40,000 x 75% = $30,000
Q: Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a…
A: Loss or gain on the exchange = Fair value of asset - Book value of asset
Q: | Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.…
A: When the commercial substance exists, the asset acquired must be recognized at Fair value, & If…
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: Peanut Corporation exchanged land and cash of $6,500 for equipment. The land had a book value of…
A: Introduction:- The following basic information as follows under:- If fair value more than Carrying…
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: As per IAS 16, Property, plant and Equipment If asset is purchased for value which includes payment…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…
Q: King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair…
A: Gain on machine = Fair value of machine exchanged - book value of old machine = 90000-60000 =…
Q: Cedric Company recently traded in an older model computer for a new model. The old model’s book…
A: Journal:Journal is the method of recording monetary business transactions in chronological order. It…
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: The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a…
A: 1.Determine the fair value of the equipment.
Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…
A: Since multiple subparts are posted, only the first three will be answered.
Q: Metro Inc. trades its used machine for a new model at Denver Co. The used machine has a book value…
A: Gain on exchange = (Fair value of machine - cost of machine) x Cash received / Fair value of machine…
Q: Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business…
A: The acquisition of assets is a part of business activities. When the company disposes of the asset…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: If exchange lacked commercial , there will be no profit or loss and exchange will be recorded at…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: Amount Bonnie should record for the asset received=Book value of asset given up+cash…
Q: On August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred…
A: Book value = Original Cost - Accumulated depreciation Book value of Asset A = $134,400 - $56,000 =…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $130,000 and a…
A: Fair value of equipment = Fair value of land + Cash given Gain on exchange = Cost of equipment - (…
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: If exchange of assets lacks commercial substance , i.e. fair values are not reliable then Property…
Q: Amble, Inc. exchanged a truck with a carrying amount of ₱12,000 and a fair value of ₱20,000 for a…
A: the correct option with proper explanation are as follows.
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: Journal means the book of prime entry where all entries are recorded in different pages.
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a…
A: Fair value of equipment Land book value. $ 150000 Cash received. $ 10000…
Q: Consider each of the independent transactions below: a) The University of Belize traded an older…
A: In the case of an exchange of assets for obtaining a new asset, the gain or loss from the exchange…
Q: On August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred…
A: Record the exchange for both Bonita, Inc. and Windsor, Inc.: ●Bonita, Inc. Computation of gain:…
Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for…
A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks…
Q: Kiko group of companies exchanged a car from its inventory for a computer system to be used in its…
A: Journal means the book of prime entry where all entries are recorded in different pages. Ledger…
Navajo Corporation traded a used truck (cost $20,000,
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- Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same type of equipment and received $12,000 cash. The old dust scrubber cost $76,200 and had a net book value of $44,000. The new dust scrubber had a fair market value of $60,000. Prepare the journal entry to record the exchange, assuming that the exchange a) has commercial substance, and b) lacks commercial substance.COPS Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost , $550,000) for a molding machine owned by Water Company. The molding machine is carried in Water's Company books at a cost of $240,000 with an accumulated depreciation of $83,000 at the time of exchange. Assume that no cash is involved in the transaction, and the fair value of the automobile is not readily determinable. The fair market value of the molding machine is $172,800. How much is the gain or loss on the exchange of Cool Company
- Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash. The manual machine cost $495,000, had a net book value of $350,000, and a fair value of $360,000. The automated machine was originally purchased by Shine Company for $510,000 and had a net book value of $430,000. It has a fair market value of $450,000. Determine the value of the asset received for Rain and Shine assuming the exchange does not have commercial substance. Please include the appropriate dollar sign and commas (example $25,000).Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in allowance and paying the remaining $83,000 in cash. The old tractor had cost $96,000 and had accumulated depreciation of $52,500. Answer the following questions assuming the exchange has commercial substance. 1. What is the book value of the old tractor at the time of exchange? 2. What is the loss on this asset exchange? 3. What amount should be recorded (debited) in the asset account for the new tractor?Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb exchanges the machine for a newer model that has a market value of $56,000. Record the exchange assuming Caleb paid $31,800 cash and the exchange has commercial substance. Record the exchange assuming Caleb paid $23,800 cash and the exchange has commercial substance.
- On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50% depreciated, for another used machine and paid a cash difference of P 160,000. The fair value of the old machine was determined to be P 700,000. Prepare the journal entry to record the exchange:Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumulated depreciation of $17,000. The new truck is worth $35,000. Slaton also made a cash payment of $33,000. Prepare Slaton’s entry to record the exchange. (The exchange has commercial substance.)Company A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a carrying amoung of 300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional 90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is 420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?
- In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for a dissimilar used machine and paid a cash difference of P32,000. The market value of the old packaging machine was determined to be P140,000. How much is the cost of the newly acquired machine and the amount of gain or loss, respectively, that Dean should record on this exchange?Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The following information relates to this exchange: Carrying amount of the car, 600,000List selling price of the car, 900,000’ Fair value of the computer, 860,000’; Cash difference paid by Caine, 100,000. What is the cost of the computer acquired in exchange?Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. To equalize fair values, Calaveras paid $8,000 in cash. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange? Assume the exchange has commercial substance.