On March 31, 2019, ABC Enterprises traded in an old machine having a carrying amount of P1,600,000 and paid a cash difference of P600,000 for a new machine having a total cash price pf P2,000,000. On March 31, 2019, what amount of loss should ABC recognize on this exchange?
Q: On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of…
A: Solution: Fair value of note on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000 *…
Q: On January 1, 2019, Kelly Company sold equipment with a carrying amount of P7, 000,000 in exchange…
A: Present value of the Note = Face value of the note x Present value factor Gain (loss) on the sale =…
Q: On January 1, 2021, Omai Co. acquired an equipment by issuing two-year, noninterest bearing note…
A: Given, Face value of note = $1,000,000 Pv of $1 (n=2, i = 12%) = 0.7972
Q: On January 01, 2021, The Company sold equipment costing P760,000 with accumulated depreciation of…
A: Solution: Present value of notes on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000…
Q: On January 01, 2022, TGIF Company sold equipment costing P10,000,000 with accumulated depreciation…
A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…
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: AU Co. acquired a fixed asset for $36,000 on November 1, 20x1 when the exchange rate was $1 =…
A: Note: As per our guidelines only the first question must be answered. Purchase price of fixed…
Q: On January 1, 2020, CullumberCorporation sold a building that cost $261,490 and that had accumulated…
A: Accumulated depreciation can be defined as the sum of total depreciation that is charged against the…
Q: Marigold's Delivery Company and Swifty's Express Delivery exchanged delivery trucks on January 1,…
A: Book value Marigold's Truck = €21,500 - €16,000 = €5,500 Fair Value of Truck = €2,800 Loss on…
Q: On January 1, 2020, Mil Company sold a building and received as consideration P1,000,000 cash and a…
A: Given, Book Value = P 1,000,000 Face Value = P 4,000,000 Rate = 10% Present Value = 0.75
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: On January 1, 2019, VINX Corporation sold equipment costing P380,000 with accumulated depreciation…
A: Present value of note on January 1, 2019 = Face value of note x present value factor (1 at 10% for…
Q: On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for…
A: The gain or loss on sale of an asset depends on the selling price and carrying value of asset. The…
Q: On January 1, 2020, Uniform Co. sold its 2-year old equipment to XYZ Inc. for a cash down-payment of…
A: Impairment is the loss of reduction of net realizable value of assets below the carrying value of…
Q: A machine cost $1104000, has annual depreciation of $184000, and has accumulated depreciation of…
A: An exchange of nonmonetary assets takes place between two entities. The accounting for nonmonetary…
Q: On January 1, 2020, CPA Corporation sold a piece of equipment that was acquired ten years ago for…
A: Solution: Fair value of equipment sold = Present value of non interest bearing note = P300,000 * PV…
Q: Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference…
A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…
Q: On March 31, 2005 JJ Enterprise traded in an old machine having a carrying amount of P1,600,000 and…
A: Total loss recognized on exchange = carrying amount of old machine + cash paid - total cash price…
Q: On December 31, 2021, AAA Company sold for P3,000,000 an old equipment having an original cost of…
A: This question deals with the calculation of interest income and carrying value of notes receivable.…
Q: On January 1, 2020, Bake Company sold a piece of equipment costing P1,200,000 with accumulated…
A: Here selling price is determined as follows = down payment received + Present value of non…
Q: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…
A: Given, Note amounting = P1,000,000 Present value of $1 (n=2,i=12%) = 0.7972
Q: On January 1, 2017, Persephone Company sold a piece of transportation equipment with a historical…
A: solution given The equipment is sold for cash and non interest-bearing note receivable The cash…
Q: On January 01, 2022, TGIF Company sold equipment costing 10,000,000 with accumulated depreciation of…
A: Carrying amount of the note = annual installments x Present value factor No. of installment to be…
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 January 1, 2020, Alpha Company issued a noninterest-bearing note for a piece of equipment…
A:
Q: On July 1, 2021, LIBAGO Company sold a machine costing P500,000 with accumulated depreciation of…
A: Profit or loss of the company is measured by preparing income statement which shows the difference…
Q: On January 1, 2021, J Company sold equipment at a cost of P700,000 and accumulated depreciation of…
A: A note or debt where there is no requirement to pay-off the interest on note is known as…
Q: On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of…
A: Solution: Present value of note on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000…
Q: Truth Corp. is in the process of preparing its financial statements for the year ended December 31,…
A: Intangible Assets Intangible assets which is described as assets which has no physical presence in…
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: On January 1, 2021, ABC Company sold machinery with carrying amount of P550,.000 for P800,000, which…
A: Present value of lease liabilities = present value of lease payments made Since payment are made in…
Q: On January 1, 2021, ABC Co. traded in an old equipment with carrying amount of P,1680,000 for a new…
A: In exchange for the asset, the cost of the new asset will be the carrying the value of the old asset…
Q: X-ray company traded in an old machine having a carrying amount of 16,800 and paid a cash difference…
A: It is pertinent to note that if Property, Plant and Equipment is acquired in exchange of a…
Q: quipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due…
A: Net present value is defined as the discounted cash flow technique which applies to weight the items…
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: On January 1, 2019, Bestbuy Inc. purchased land that had an assessed value of P6,000,000 at the time…
A: Present value of non-interest-bearing note on January 1, 2019 = Face value of non-interest-bearing…
Q: On January 1, 2020, Kingbird Corporation sold a building that cost $257,510 and that had accumulated…
A: Net Book Value of Building = Cost of the Building - Accumulated depreciation =$257,510 - $102,150…
Q: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…
A: Solution:- Calculation of the cost of equipment if the equipment has no cash price equivalent as…
Q: Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery…
A: Solution: Amount at which new truck should be recorded on Parr's book = Cash paid + Fair value of…
Q: On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated…
A: The non cash assets acquired in exchange process is recorded at fair market value in the accounting…
Q: On January 2, 2021, BB Corporation sold equipment with a cost of $700,000 and accumulated…
A: Present value of note=Value of note×PVIF@10%,3years=$600,000×0.751314800=$450,788.88054
Q: On January 1, 2021, Gobert Company sold property to Beasley Company. There was no established…
A: Introduction: A journal entry is used to record a commercial transaction in the accounting records…
Q: Yin Co traded in an old machine having a carrying amount of P16,800, and paid a cash difference of…
A: Carrying value of an asset refers to the value that is the difference of original cost of asset and…
Q: On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange…
A: We know that the fair value of the note is the present value of all the cash inflows made on the…
Q: Ming Company bought a machine on 1 July 2019 for $90,000. It incurred an additional $2,000 in…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: e was no established exchange price for the equipmentThe prevailing rate of interest for a note of…
A: Proceeds -:Proceeds pertain to the cash collected from a lot of goods or assets during a specific…
Q: On January 1, 2019, VWX Corporation sold equipment costing P380,000 with accumulated depreciation of…
A: Present value of note on January 1, 2019 = Face value of note x present value factor (1 at 10% for…
Q: On January 1, 2017, Emme Company sold equipment with a carrying amount of P4,800,000 in exchange for…
A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: On January 01, 2021, VKS Company sold equipment costing P760,000 with accumulated depreciation of…
A: Present value of the note on January 01, 2021 = Face value of the Note x PV factor (5%, 4 years) =…
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- On July 1, 2019, Optimistic Company sold a machine costing P500,000 with accumulated depreciation of P380,000. On the date of sale, Optimistic received as consideration for the sale, a P300,000 noninterest-bearing note, due July 1, 2022. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type at July 1, 2019 was 12% and 13% on December 31, 2019. In relation to this transaction, what is the total income to be recognized in Optimistic’s 2019 statement of comprehensive income? (Round PVF to 4 decimals) P119,165 P180,000 P101,445 P106,352On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?On July 1, 2021, LIBAGO Company sold a machine costing P500,000 with accumulated depreciation of P380,000 on the date of sale. LIBAGO received as consideration for the sale, a P300,000 non-interest bearing note, due July 1, 2024. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type at July 1, 2021 was 12% and 13% on December 31, 2021. 37. In relation to this transaction, the total income to be recognized in LIBAGO’s 2021 profit or loss is:
- On January 2, 2021, BB Corporation sold equipment with a cost of $700,000 and accumulated depreciation of $ 220,000 in exchange for a $600,000 non-interest-bearing note due on January 2, 2024. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2021 was 10%. How much is the gain (loss) on the sale of equipment?On January 1, 2019, VWX Corporation sold equipment costing P380,000 with accumulated depreciation of P160,000 on the date of sale. Adobo received as consideration for the sale, a P400,000, non-interest bearing note, due January 1, 2022. There was no established exchange price for the equipment and the note had no read market. The prevailing rate of interest for a note of this type at January 1, 2019 was 10%. The present value of 1 at 10% for three periods is 0.75. What is the note’s carrying amount at December 31, 2019? 135,000 340,000 330,000 300,000On January 01, 2021, The Company sold equipment costing P760,000 with accumulated depreciation of P320,000 on the date of sale. Company received as consideration for the sale, a P800,000 noninterest-bearing note due January 1, 2025. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type on January 01, 2021 was 5%. Using two decimal places for the present value (PV) factor, what is the note’s carrying amount on December 31, 2021?
- On March 31, 2005 JJ Enterprise traded in an old machine having a carrying amount of P1,600,000 and paid cash difference of P600,000 for a new machine having a total cash price of P2,000,000. On March 31,2005, what amount of loss should JJ recognize on this exchange?On January 01, 2021, VKS Company sold equipment costing P760,000 with accumulated depreciation of P320,000 on the date of sale. CPA received as consideration for the sale, a P800,000 noninterest-bearing note due January 1, 2025. There was no established exchange price for the equipment and the note had no ready market. The prevailing rate of interest for a note of this type on January 01, 2021 was 5%. Using two decimal places for the present value (PV) factor, what is the note’s carrying amount on December 31, 2021?On January 1, 2021, ABC Co. sold a transportation equipment with a historical cost of ₱1,000,000 and accumulated depreciation of ₱300,000 in exchange for cash of ₱100,000 and a noninterest-bearing note receivable of ₱800,000 due on January 1, 2025. The prevailing rate of interest for this type of note is 12%. How much is the gain / (loss) on sale? How much is the unamortized interest on December 31, 2023?
- On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement? (If loss, put a negative sign before the numerical answer)Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. What amount of loss should Ray recognized on this exchange?Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery truck having a list price of P160,000 and paid a cash difference to the dealer of P75,000. The used truck has a fair value of P60,000 on the date of the exchange. At what amount should the new truck be recorded on Parr's books? P135,000 P129,000 P160,000 P106,000
