The Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair value of $154,00O. Bronco received $12,000 from the owner of the equipment to complete the exchange which has commercial substance. Required: 1. What is the fair value of the equipment? 2. Prepare the journal entry to record the exchange. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the fair value of the equipment? Fair value 3.400 X
Q: Question 3: When is an employer NOT required to file a quarterly Form 941? Answer: A. When annual…
A: Note: As per our guidelines, only the first question should be answered. 3. If you're obliged to…
Q: Instructions: Identify each of the following accounts as an asset, Liability or Equity. ACCOUNTS…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: Example 1) Fair value through profit or loss: Equity investment ABC Co. had the following…
A: Accounting for trading investments were include the recognition of purchase, sale, profit, or loss…
Q: Question 25: Which statement regarding Form W-3 is inaccurate? Answer: A. Form W-3 contains earnings…
A: Correct option is (C) Form W-3 is submitted to social security administration and provided to each…
Q: Appropriation of retained earnings is necessary when the corporation reacquires its own share…
A: Acquisition of own share capital means purchase of corporate's own shares from the investors either…
Q: Treasury shares were acquired for cash at a price above par value. The treasury shares were…
A: The treasury stock includes the own shares purchased by company from the shareholders.
Q: ter a wedding, ten people were hospitalized possibly as a result of food poisoning from products…
A: Contingent liabilities are liabilities that are probable to occur on a future date. They are not…
Q: Jan Van Tura, a sole trader provides you with the following information: N$ Vehicle ?????…
A: Formula: Net book value = vehicle - Accumulated depreciation
Q: Determine the consolidated net income for 2020.
A: Consolidated net income is the net income which has been actually earned by the company when the…
Q: Sherborne sold his rental house in California, for a sales price of $750,000. He recognized a…
A: The rise in the value of a financial instrument when this is sold is referred to as a capital gain.…
Q: On December 31, the stockholders' equity section of the balance sheet of Monk Associates reflected…
A: Source of raising funds includes: Issue of common stock Issue of debts securities i.e. Bonds,…
Q: Earthworks is an excavation company which started its operations in the year 2008. The board of…
A: CCA stands for "Common Classes and Rates:"Cost of capital is an important part of accounting as it…
Q: 0,000 per year. Wh
A: Concept Under straight Line method, same amount of depreciation is charged on the Asset in each of…
Q: Income Statements For the Years Ended December 31 Increase/(Decrease) 20Υ7 20Y6 Amount Percent Fees…
A: Formula used: Increase / ( Decrease ) amount = 20Y7 value - 20Y6 value
Q: Calculate the weighted average number of shares for the following Shares outstanding 100,000 Date…
A: The weighted average number of shares is calculated by multiplying the total number of shares…
Q: During February 2022, the following occurred in the business of Nam-Tura Trading, a general dealer:…
A: The amount paid by customer is calculated as total balance minus discount provided.
Q: March $124,500 April 115,800 May 105,400 Depreciation, insurance, and property taxes represent…
A: Budgeted receipts and payment means the statement which shows the expected receipt and expected…
Q: Calculate the missing values and express the answers rounded to two decimal places. Rate of Amount…
A: Markup means the difference between the selling price and direct cost. Markup is generally related…
Q: On June 30, 2019, New Company granted compensatory share option for 30,000 P20 par value ordinary…
A: Share Option For the employees share option which can be prevailed for retain the employees into the…
Q: ABC Kitchen sells dishwashers and garbage disposals to customers. The company buys the dishwashers…
A: The profit from the sale of goods is realized when the goods reach their final delivery destination.…
Q: week) as he wan ked > 40/week
A: Budget line C=17 h for h≤401.517h-40for 40≤h≤60217h-60for h≤60
Q: Y Inc. is a wholly owned subsidiary of P Corporation. The following are excerpts from the 2019…
A: Net income attributable to p corporation is the total net income after taxes which belongs to the p…
Q: The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of…
A: Under USA Taxation rules, if the corporates are receiving any dividend from the other body…
Q: Financial statement analysis is a part of business analysis. please explain about that statement!…
A: Financial Statements Financial Statements refer to those statements that provide a snapshot of the…
Q: n is employed at Quiet Inc. and is paid a monthly salary of ₱70,000. How much is her net pay after…
A: Given Information Monthly Salary = ₱70,000
Q: Journalise transactions in multi-column purchase journal The chart of accounts of Gibson Ltd…
A: The question is related to Journal Entries for the month of July in the books of Gibson Limited.
Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…
A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…
Q: How does Haier’s internationalization strategy differ from the pattern of international development…
A: (Harvard Business Review, 2018). According to Zhang's 'Zero Distance' policy, everyone in the…
Q: The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next…
A: The question is based on the concept of Cost Accounting. Cash budget is used to calculate the…
Q: Rollins and Cohen, CPAS, offer three types of services to clients: auditing, tax, and small business…
A: ROLLINS AND COHEN, CPAs Professional Fees Earned Budget For the Month Ending January 31,…
Q: Y Inc. is a wholly owned subsidiary of P Corporation. The following are excerpts from the 2019…
A: Intercompany sales mean that sales are made by one company of the group of companies to the other…
Q: Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are…
A: Formula used: Profit margin=Net incomeNet sales×100 Asset turnover=Net salesAverage total assets…
Q: Sapphire Computer Company has been purchasing carrying cases for its portable comput-ers at a…
A: Differential analysis is a decision-making approach that analyses the net effects of two…
Q: Assuming the taxpayer is a CORPORATION, how much is the OSD and net taxable income using OSD?
A: Tax Tax refers to the compulsory payment made by individuals or corporations to the government.…
Q: During February 2022, the following occurred in the business of Nam-Tura Trading, a general dealer:…
A: The discount allowed to debtors is recorded as debit balance into the books.
Q: A city needs a new pedestrian bridge over a local stream. The city uses an interest rate of 5%, and…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: Question 5: Identify each item as describing Form 941, Form 940, or both. A. Includes a voucher that…
A: Form 940 and Form 941 are both federal taxation forms for employment. Form 940 is filled annually…
Q: An entity grants 100 cash share appreciation rights (SARs) to each of its 500 employees, on…
A: Compensation in accounting is a sum of money that you pay to somebody because of some reason or an…
Q: Štart $1.00 2|3 4|5 89 10 TV Key Assumptions Construction cost ($) Loan ($) Loan interest rate Loan…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows) IRR is a rate at…
Q: Using the information in AA8, how much is the total amount of Retained Earnings? P 150,000 P 100,000…
A: Retained earnings means the amount that is left after paying all the expenses and amount that…
Q: Required: • prepare a worksheet
A: Accounting is the process of recording, classifying and summarising accounting information. At the…
Q: The following is a list of balances relating to Phiri Properties Ltd during 2010. The company…
A: Debtors refer to the dues that are receivable from the credit customers by the business..
Q: What effect does the issuance of a 2-for-1 stock split have on each of the following? Par Value per…
A: Stock split does not gives any additional funding to the organization. It will increase number…
Q: Jaybird Company operates in a highly competitive market where the market price for its product is…
A: The profits are calculated as difference between total revenue and expenses for the period.
Q: ith narrations) for the following three transactions (voucher and are not required): on 1 t of one…
A: Basic Accounting Journal Entry
Q: Vegas Company has the following unit costs: Variable manufacturing overhead $ 20 Direct materials 25…
A: The contribution margin is calculated as difference between sales revenue and variable cost.
Q: The Amani Company is planning a $200,000 equipment investment that has an estimated eight-year life…
A: Payback is the period during which the initial investment in the project will be recovered from…
Q: In reconciling the Cash in Bank of Inner Company with the bank statement balance for the month of…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Equipment for immersion cooling of electronic components has an installed value of P 819,000 with an…
A: Sinking fund method of depreciation Concept of depreciation Accounting
Q: In the month of June, the cash available to partners amounted to
A: Liquidation of Partnership For the liquidation of the partnership it distributed the cash into the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 1. Payor Inc. and Recipient Co. have an exchange with no commercial substance. The asset given up by Payor Inc. has a book value of P12,000 and a fair value of P15,000. The asset given up by Recipient Co. has a book value of P20,000 and a fair value of P19,000. Boot of P4,000 is received by Recipient Co. Recipient Co. should record the asset received at Group of answer choices P16,000 P19,000 P15,000 P20,00026. Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of P12,000. The asset given up by Life Co. has a book value of P20,000. Cash of P4,000 is received by Life Co. What amount should Love Inc. record for the asset received? CHOICES: P20,000 P23,000 P19,000 P16,000Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000(original cost of $28,000 less accumulated depreciation of $16,000) and a fair value of $9,000. Kapono paid$20,000 cash to complete the exchange. The exchange has commercial substance.Required:1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value ofthe new tractor?2. Repeat requirement 1 assuming that the fair value of the old tractor is $14,000 instead of $9,000.
- 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 A? P120,000 gain P120,000 loss P30,000 loss P60,000 gainKapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000 (original cost of $28,000 less accumulated depreciation of $16,000) and a fair value of $9,000. Kapono paid $20,000 cash to complete the exchange. The exchange has commercial substance. Required: 1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? 2. Repeat requirement 1 assuming that the fair value of the old tractor is $14,000 instead of $9,000.51. Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of P12,000. The asset given up by Life Co. has a book value of P20,000. Cash of P4,000 is received by Life Co. What amount should Love Inc. record for the asset received?
- Hw.27. Entity A entered into a sale and repurchase agreement for its head office on 1 January 2022, selling the office to Bank B for $78,560,000. On the same date, the head office had a fair value of $97,800,000. Entity A will continue to use the head office for the next 2 years and has the option to buy back the property for $93,765,779, based on an effective interest rate of 9.25% per year over the next 2 years. Property prices are expected to increase over the next 2 years. REQUIRED: Measure the net amount to be shown in the Statement of Profit or Loss for the year ended 31 December 2022. 1. $7,938,979 Expense 2. $19,240,000 Expense 3. $0 4. $7,266,800 Expense 5. None of them.1. Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old machine has a book value of $1,400,000 and a fair value of $2,400,000 on the date of the exchange. If this transaction has commercial substance, the cost of the new machine would be recorded at a.$4,000,000. b.$2,600,000. c.$5,000,000. d.cannot be determined. 2. Belpre Inc. constructed a new office building. Building material costs for the new building were $3,000,000; total labor costs were $2,500,000; total company overhead was $9,000,000 (25% of which could be assigned to the new project); and interest paid on a new construction loan for the project was $1,250,000. Calculate the total cost of the self-constructed building.Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book valueof $500,000 and a fair value of $700,000. Kapono paid $50,000 cash to complete the exchange. The exchangehas commercial substance.Required:1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value ofthe new land?2. Repeat requirement 1 assuming that the fair value of the farmland given is $400,000 instead of $700,000.3. Repeat requirement 1 assuming that the exchange lacked commercial substance.
- King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair value of $90,000. King received a machine with a fair value of $80,000 plus cash of $10,000. 1) Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. 2) Prepare the journal entry to record the exchange assuming that the exchange has nocommercial substance. ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment had a carrying value of P3,500,000 and fair value of P1.875,000. DEF's equipment has a fair value of P1,000,000 and carrying value of P1,200,000. DEF paid P700,000 cash to ABC. If the exchange LACKS commercial substance, DEF would capitalize the new equipment at: 500,000 1,000,000 1,200,000 1,900,000121. ABC Co purchased a masthead for $10,000. A 5% discount is available on the purchase. On acquisition date, the exchange rate is P46:$1. Installation and testing costs were P25,000. How much is the cost of the masthead? 485,000 462,000 460,000 435,00