plus Q2 Mathews Company exchanged equipment used in its manufacturing operations $12,500 in cash for similar equipment used in the operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Baiggio Book Value Instructions (a) Prepare the journal entries to record the exchange on the books of both companie Assume that the exchange lacks commercial substance. Mathewes Book Value Book Value = Fair Value Baiggio Book Value Fair Value $153,000 $31,000 $132,500 $12,500 (b) Prepare the journal entries to record the exchange on the books of both companie Assume that the exchange has commercial substance. Fair Value Fair Value Gain (Loss) Gain (Loss) $146,000 $18,500 $145,000 Gain (Loss) Gain (Loss)

plus Q2 Mathews Company exchanged equipment used in its manufacturing operations $12,500 in cash for similar equipment used in the operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Baiggio Book Value Instructions (a) Prepare the journal entries to record the exchange on the books of both companie Assume that the exchange lacks commercial substance. Mathewes Book Value Book Value = Fair Value Baiggio Book Value Fair Value $153,000 $31,000 $132,500 $12,500 (b) Prepare the journal entries to record the exchange on the books of both companie Assume that the exchange has commercial substance. Fair Value Fair Value Gain (Loss) Gain (Loss) $146,000 $18,500 $145,000 Gain (Loss) Gain (Loss)

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 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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