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Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1. Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000, 2. Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000. 3. Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000. 4. Acquired a car by giving up a truck that had originally cost $20,000, has a book value of $15,000, and has a “blue book” value of $16,800. In addition, the company received $1,000 cash. Required: Prepare Bremer’s journal entry for each exchange. Assume all exchanges were determined to have commercial substance.

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 10, Problem 5P
Textbook Problem

Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019:

  1. 1. Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000,
  2. 2. Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000.
  3. 3. Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000.
  4. 4. Acquired a car by giving up a truck that had originally cost $20,000, has a book value of $15,000, and has a “blue book” value of $16,800. In addition, the company received $1,000 cash.

Required:

Prepare Bremer’s journal entry for each exchange. Assume all exchanges were determined to have commercial substance.

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Chapter 10 Solutions

Intermediate Accounting: Reporting And Analysis
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