Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 11, Problem 11.29E
a.
To determine
To prepare:
Given Information:
Cash paid in exchange of chocolate mixing machine is $31,500.
Fair value of chocolate mixing machine exchanged is $437,500.
Book value of machine is $500,000.
Historical cost of the machine is $1,135,000.
Fair value of new mixing machine is $469,000.
Book value of new machine is $380,000.
b.
To determine
To prepare: Journal entry to record the exchange.
Given Information:
Cash paid in exchange of chocolate mixing machine is $31,500.
Fair value of chocolate mixing machine exchanged is $562,500.
Book value of machine is $500,000.
Historical cost of the machine is $1,135,000.
Accumulated depreciation is $635,000.
Fair value of new mixing machine is $594,000.
Book value of new machine is $380,000
c.
To determine
To prepare: Journal entry to record the exchange.
Given Information:
Cash paid in exchange of chocolate mixing machine is $31,500.
Fair value of chocolate mixing machine exchanged is $562,500.
Book value of machine is $500,000.
Historical cost of the machine is $1,135,000.
Accumulated depreciation is $635,000.
Fair value of new mixing machine is $594,000.
Book value of new machine is $380,000
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Chapter 11 Solutions
Intermediate Accounting (2nd Edition)
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