Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset. To calculate: The book value of old tractor at the time of exchange.

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Answer 1

Question

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

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Students have asked these similar questions

Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $311,000. Huffington was given a $237,000 trade-in allowance on the old truck, which meant they paid $74,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck? Multiple Choice $240,000 $300,000 $74,000 $311,000 $314,000

Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot received $4,000 cash on the exchange. The fair value of the new equipment is $14,000. Original cost of old equipment : $10,000 Accumulated Depreciation on old equipment: $6,000 If the transaction lacks commercial substance, what amount does Mariot assign to the new equipment?

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 of the new tractor? 2. Repeat requirement 1 assuming that the fair value of the old tractor is $14,000 instead of $9,000.

Answer 2

Question

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

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Answer 3

Question

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

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Answer 4

Question

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

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Answer 5

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

Answer 6

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

Answer 7

Chapter 8, Problem 23E

1.

Summary Introduction

Introduction: Thefixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The book value of old tractor at the time of exchange.

Answer 8

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

Answer 9

2.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To calculate: The loss on exchange of asset.

Answer 10

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

Answer 11

3.

Summary Introduction

Introduction:The fixed assets of the company is held for a longer period of time. It is not for resale purpose and used in the operations of the business. These are recorded at the book value calculated by deducting accumulated depreciation from the cost price of the asset.

To prepare: The amount that should be recorded in asset account for new tractor.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 2DQ Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Solution Summary: The author explains that the fixed assets of the company are held for a longer period of time.

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