Bussell Company exchanged the following assets during 2019: Feb. 1 Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000. Feb. 1 Same facts as above (newer machine worth $30,000), except that the asset being surrendered has a book value of $33,000. Apr. 1 Acquired a newer machine by giving up a machine that originally cost $45,000, has a book value of $20,000, and is worth $32,000. In addition, $5,000 cash was received. Apr. 1 Same facts as above (machine with an original cost of $45,000), except that the asset being surrendered has a book value of $36,000. Jul. 1 Acquired a newer machine worth $90
Bussell Company exchanged the following assets during 2019: Feb. 1 Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000. Feb. 1 Same facts as above (newer machine worth $30,000), except that the asset being surrendered has a book value of $33,000. Apr. 1 Acquired a newer machine by giving up a machine that originally cost $45,000, has a book value of $20,000, and is worth $32,000. In addition, $5,000 cash was received. Apr. 1 Same facts as above (machine with an original cost of $45,000), except that the asset being surrendered has a book value of $36,000. Jul. 1 Acquired a newer machine worth $90
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 5P: Assets Acquired by Exchange Bremer Company made the following exchanges of assets during 2019: 1....
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Bussell Company exchanged the following assets during 2019:
| Feb. 1 | Acquired a newer machine by paying $4,000 cash and giving up a machine that originally cost $40,000, has a book value of $25,000, and is worth $30,000. |
| Feb. 1 | Same facts as above (newer machine worth $30,000), except that the asset being surrendered has a book value of $33,000. |
| Apr. 1 | Acquired a newer machine by giving up a machine that originally cost $45,000, has a book value of $20,000, and is worth $32,000. In addition, $5,000 cash was received. |
| Apr. 1 | Same facts as above (machine with an original cost of $45,000), except that the asset being surrendered has a book value of $36,000. |
| Jul. 1 | Acquired a newer machine worth $90,000 by giving up a machine of equal value. The machine surrendered had originally cost $150,000 and has a book value of $80,000. |
| Jul. 1 | Same facts as above (new machine worth $90,000), except that the asset being surrendered has a book value of $94,000. |
| Oct. 1 | Acquired a building in exchange for land that had originally cost $130,000 and is now worth $200,000. |
| Oct. 1 | Same facts as above (acquired a building in exchange for land), except that $30,000 was paid. |
| Oct. 1 | Same facts as above (acquired a building in exchange for land), except that $20,000 was received. |
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