PURCHASE PRICE
Q: A and B have an exchange with no commercial substance. The equipment given up by A has a historical…
A: Exchange of Assets It is important to recognize gain or loss at the time of exchange of assets…
Q: A fixed asset with a cost of $25,556 and accumulated depreciation of $23,000 is traded for a similar…
A: Solution: Cost at which new equipment will be recorded = Fair market value of the new equipment =…
Q: A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar…
A:
Q: Hot Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…
A: As per IAS 16 PPE When PPE are acquired for exchange of another ppe, the same should be valued at…
Q: A fixed asset with a cost of $29,006 and accumulated depreciation of $26,105 is traded for a similar…
A: Given that: Cost of fixed asset = $29006 Accumulated Depreciation = $26105 Fair market price of new…
Q: Sullivan Corp. exchanged one of their buildings (Building 24), which, on the date of exchange, has…
A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…
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: f a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a…
A: Answer : gain recognized on exchange of asset = $ 40,000
Q: Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a…
A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…
Q: the equipment had a fair value of $4,500,000. The equipment originally cost Brody $4,680,000, had…
A: Loss on impairment = carrying value - Recoverable amount Where, Recoverable amount = Lower of fair…
Q: Swifty Corporation has equipment with a carrying amount of $2540000. The expected future net cash…
A:
Q: Bryant Inc. and Rizzo Co. have an exchange that lacks commercial substance. The asset given up by…
A: An asset is a monetary resource that an individual, corporation, or government owns or controls in…
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: 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: 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: ABC Co. traded a used equipment with a book value of P6,800 and a fair market value of P9,200 for a…
A: If an exchange has commercial substance then it should be accounted for the fair value. Gain is…
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: Toro Co. has equipment with a carrying amount of$700,000. The expected future net cash flows from…
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a…
A: Here in this question, we are required to determine how much gain or loss should be recorded by…
Q: Hoyle Company traded machinery with a book value of $680,000 and a fair value of $720,000. In…
A: Book value (also known as the carrying value) is the amount at which an asset is being reported in…
Q: On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…
A: The following calculations are done for Al-Quds Company.
Q: How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment…
A: Since the exchange will not impact the future cash flows, the exchange does not have any commercial…
Q: On January 1, 2022, J Company acquired an intangible asset from a foreign company. The invoice price…
A: The cost of a separately acquired intangible asset comprise: a) its purchase price, including import…
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: Bloomington Inc. exchanged land for equipment and $2,600 in cash. The book value and the fair value…
A: There are transactions that companies make between each other to exchange assets. The exchange can…
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: During the year, Endeavor Co. received an intangible asset from Allmight Co. in an exchange…
A: INTANGIBLE ASSETS:- Intangible assets are those assets which don't have any physical substance…
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: A fixed asset with a cost of $24,737 and accumulated depreciation of $22,263 is traded for a similar…
A: The new equipment with commercial substance should be recorded at fair market value.
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: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…
A: The old assets by the business are sold at carrying value and new assets are acquired at fair value…
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: air value of P1,000,000 and carrying value of P1,200,000. DEF paid P700,000 cash to ABC. If…
A: Exchange has commercial substance is when expected future cash flow will be affected due to the…
Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…
A: Commercial Substance: If there is a change in future cash flow of the business as result of business…
Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…
A: Assets means the resources which is owned by business. Liability means the amount which is to be…
Q: On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…
A: Recognized gain:- It is a profit that one makes from selling off an asset. It is an amount which…
Q: amount of loss
A: Carrying amount of the old machine P16,800 Cash difference paid P6,000 Total cash price of the…
Q: BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000.…
A: List price (i.e., P 800,000) is the price listed on the machine. The initial cost of machine will 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: Foxtrot Co, exchanged equipment and $17,100 cash for similar equipment. The book value and the fair…
A: As per IAS 16 of property plant and equipment of international financial reporting standards. If…
Q: Aye Company owns an equipment with carrying amount of P2,000,000 and fair value of P2,500,000on the…
A: The equipment acquired in exchange is recorded at fair value of that particular asset.
Q: Jersey Inc. and Texas Co. have an exchange with no commercial substance. The asset given up by…
A: The old assets given up by the company are recorded at book value of the particular asset.
Q: Concord Corporation owns machinery with a book value of $563000. It is estimated that the machinery…
A: Impairment loss = Carrying value - Recoverable amount
Q: Cullumber Company traded machinery with a book value of $525000 and a fair value of $1025000. It…
A: The company is required to record a gain in the books of accounts for the exchange of assets if the…
Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…
A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…
Q: On july 1, 2021, JULIA exchanged its-non-monetary asset (equipment) with GERALD's non-monetary asset…
A: If exchange lacked commercial substance, there will be no profit or loss and exchange will be…
Q: Prince Company and Albert Company agreed to exchange tractor trailers. Information relating to these…
A: The asset is considered as something that an investor buys with an intention of making income from…
The old equipment has an original cost of P1,500,000,
How much should be recorded as the PURCHASE PRICE of the equipment?
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- CAKE Corporation exchanged a piece of equipment for new equipment. Data pertaining to the old equipment follows: Cost-P500,000; Accumulated Depreciation, P300,000; Fair value of old equipment, P180,000. The fair value of the new equipment is P230,000 and CAKE Corporation paid P50,000 to complete the exchange transaction. Assuming the configuration of the cash flows of the equipment is significantly different, how much is the gain or loss on exchange?In June 2021, Titanic Company acquired a machine in exchanged for a non-monetary asset with a cost of P1,200,000 and an accumulated depreciation of P600,000 and paid a cash difference of P160,000. The market value of the non-monetary asset was determined to be P650,000. If the exchange ha commercial substance, what amount of gain is to be recognized?If a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a fair value of $300,000 plus cash of $100,000 for a new asset, what is the gain or loss recognized on the transaction?
- How much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by Gabrille has a book value of P120,000 and a fair value of P135,000. The asset given up by Lucy has a book value of P220,000 and a fair value of P200,000. Cash of P65,000 is received by Lucy. What amount should Gabrille record for the asset received? a. 200,000 b. 110,000 c. 185,000 d. 135,000On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN's non- monetary asset (machinery). The following data were made available: PAOLO: Equipment Accumulated depreciation Fair value of the Equipment P4.400,000 2.000,000 3,000,000 YEN: Machinery Accumulated depreciation Fair value of the machinery P3,700,000 1,800,000 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is cost of the new asset of PAOLO?
- On july 1, 2021, PAOLO exchanged its-non-monetary asset (equipment) with YEN's non-monetary asset (machinery). the following data were made available: PAOLO: Equipment P4,400,000 accumulated depreciation 2,000,000 cash received from gerald 3,000,000 YEN: Machinery P3,700,000 Accumulated depreiation 1,800,000 Fair value of the machinery 2,100,000 The exchange has significantly changed the cash flows of each entity. How much is the cost of the new asset of PAOLO?Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?Equipment that cost $1,400,000 and has accumulated depreciation of $600,000 is exchanged for equipment with a fair value of $960,000 and $40,000 cash is paid. The exchange has commercial substance. The gain to be recognized from the exchange is
- Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a building for Indoy's equipment. The following information are as follows: Hartney (Machine) Indoy (Equipment) Cost of asset exchanged P900,000 P800,000 Accumulated depreciation 540,000 320,000 Fair value of asset exchanged 400,000 350,000 Cash received (paid) 50,000 (50,000) Assuming that the transaction has a commercial substance, how much should Indoy recognize gain/loss in the exchange? (Note: Indicate "( )" if loss)Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below Alvarez Reymond Carrying amount 85,000 130,000 Fair value 95,000 115,000 Cash paid by Alvarez to Reymond 15,000 How much is the initial measurement of the equipment received by Reymond if the exchange has a commercial substance? Refer to the previous question, how much is the gain (loss) recognized by Reymond?A fixed asset with a cost of $29,006 and accumulated depreciation of $26,105 is traded for a similar asset priced at $65,000 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $5,268, at what cost will the new equipment be recorded in the books? a.$62,633 b.$59,732 c.$67,901 d.$65,000
