Question 20 - A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount of $120 had been taken each year. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, and the balance is paid in cash. The transaction to enter the exchanges of these two assets would result in the recognition of a gain of $40. a loss of $40. a gain of $200. neither a gain nor a loss.

Question 20 - A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount of $120 had been taken each year. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, and the balance is paid in cash. The transaction to enter the exchanges of these two assets would result in the recognition of a gain of $40. a loss of $40. a gain of $200. neither a gain nor a 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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 20E: (Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company...

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(Appendix 11.1) Depreciation for Financial Statements and Income Tax Purposes Dinkle Company purchased equipment for 50,000. The equipment has an estimated residual value of 5,000 and an expected useful life of 10 years. Dinkle uses straight-line depreciation for its financial statements. Required: What is the difference between the companys income before taxes reported on its financial statements and the taxable income reported on its tax return in each of the first 2 years of the assets life if the asset was purchased on January 2, 2019, and its MACRS life is 5 years?
Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. Required Prepare a schedule of depreciation under MACRS. Round figures to the nearest whole dollar. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 3 depreciation, 3,456
QUESTION 9 A company buys a patent for $100,000 on 31 December 20X1. It expects to use the patent for the next 10 years, after which it will be valueless. According to IAS 38 Intangible assets, compute the annual amortisation charge. What is the journal entry required to record the amortisation in the accounts for the year ended 31 December 20X2
PROBLEM 1 On August 1, Barreto Company exchanged a machine for a similar machine owned by Blakey Company and also paid $7,000 cash to Blakey Company. Barreto's machine cost $85,000 when originally purchased and has accumulated depreciation to date of $25,000 and a fair market value of $55,000. Blakey's machine originally cost $96,000 and has accumulated depreciation to date of $42,000 and a fair value of $62,000. Prepare the necessary journal entries for Barreto Company and Blakey Company to record this transaction assuming commercial substance.
Chapter 2 / Question 2: A manufacturing entity buys a machine (an item of property, plant and equipment) for 20 million dinars on 1 January 20X1. The machine is held under the cost model and has a useful life of 20 years. The entity has a reporting date of 31 December 20X1 and a functional currency of dollars ($). Exchange rates are as follows: What is the carrying amount of the machine as at 31 December 20X1?
January 5th Problem: Traded in all of used computer equipment with a fair value of $13,200,000., and received in exchange new computer equipment (useful life: 10 years, salvage value: 1,947,040) with a fair value of $8,000,000 plus cash of $500,000. Double-declining method will be used. Please explain how the answers in this JE is obtained!! Thank you!!
21.Zhane Company exchanged a car from its inventory for a computer system to be used in its technological upgrading project. The following information relates to this exchange that took place on July 16, 2021.Listed selling price of the car-900,000FV of the computer system-860,000Carrying amount of the car-600,000If Zhane Company recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction? a. 100,000 b. 260,000 c. 140,000 d. Cannot be determined
14. ABC purchased a machine on January 1, 20X0, for P18,000 cash. The machine has an estimated useful life of four years and a salvage value of P4,700. ABC uses the double-declining-balance method of depreciation for all its assets. What will be the machine's book value as of December 31, 20X1?
20.Charles Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. Charles Company paid P500,000 cash in the exchange.Determine the following: (1) Initial cost of the newly acquired equipment(2) Gain or loss on exchange a. (1) 800,000; (2) 20,000 gain b. (1) 780,000; (2) 20,000 loss c. (1) 780,000; (2) 0 d. (1) 800,000; (2) 0
QUESTION 32 Vaughn Company purchases equipment on January 1, Year 1, at a cost of $518,000. The asset is expected to have a service life of 12 years and a salvage value of $50,000. Instructions (a) Compute the amount of depreciation for each of Years 1 through 3 using the straight-line depreciation method. (b) Compute the amount of depreciation for each of Years 1 through 3 using the sum-of-the-years’- digits method. (c) Compute the amount of depreciation for each of Years 1 through 3 using the double-declining balance method. (In performing your calculations, round constant percentage to the nearest one hundredth of a point and round answers to the nearest dollar.)
QUESTION 8 Co. A purchased a patent on 31 December 20X1 for $450,000. Co. A expects to use the patent for 5 years, after which it will be valueless. According to IAS 38 Intangible assets, compute the annual amortisation charge. What is the journal entry required to record the amortisation in the accounts for the year ended 31 December 20X2?
Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $8,500. The truck has a cost of $12,000 and a book value of $8,000 on Harmes books. Goodman agrees to pay $500 to complete the exchange. Prepare journal entries for Goodman and Harmes to record the exchange