7 Numbers 7 and 8Below is the information relative to an exchange of asset by Mimi Bernan Company. The exchange has commercialsubstance in Case1 and without commercial substance in Case 2.Old EquipmentBook valueFair valueCash paid15,000Case 175,00050,00085,00075.000Case 27.0003) What is the initial cost of the new equipment under Case 1?A 90,000B. 100,000с.70.000D. 60,0004) What is the gain or loss in exchange should Mimi Bernan Company under Case 1?A 10,000 gainB. 10,000 lossC. 15.000 gainD. Zero5) What is the initial cost of the new equipment under Case 2?A 57,000B. 82.000С. 43.000D. 68,0006) What is the gain or loss in exchange should Mimi Bernan Company under Case 2?A 25,000 gainB. 25.000 lossC.7,000 lossD. Zero

As per IAS 16,Property,plant and equipment If purchase of asset is made partly for cash and partly…

Numbers 7 and 8 Below is the information relative to an exchange of asset by Mimi Bernan Company. The exchange has commercial substance in Case1 and without commercial substance in Case 2. Old Equipment Book value Fair value Cash paid 15,000 Case 1 75,000 85,000 75.000 Case 2 50.000 7.000 3) What is the initial cost of the new equipment under Case 1? A 90,000 B. 100,000 C. 70.000 D. 60,000 4) What is the gain or loss in exchange should Mimi Bernan Company under Case 1? A 10.000 gain B. 10,000 loss C. 15.000 gain D. Zero 5) What is the initial cost of the new equipment under Case 2? A 57,000 B. 82,000 C. 43.000 D. 68.000

Numbers 7 and 8 Below is the information relative to an exchange of asset by Mimi Bernan Company. The exchange has commercial substance in Case1 and without commercial substance in Case 2. Old Equipment Book value Fair value Cash paid 15,000 Case 1 75,000 85,000 75.000 Case 2 50.000 7.000 3) What is the initial cost of the new equipment under Case 1? A 90,000 B. 100,000 C. 70.000 D. 60,000 4) What is the gain or loss in exchange should Mimi Bernan Company under Case 1? A 10.000 gain B. 10,000 loss C. 15.000 gain D. Zero 5) What is the initial cost of the new equipment under Case 2? A 57,000 B. 82,000 C. 43.000 D. 68.000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 53P

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