Question

In: Accounting

P. Chang & Co. exchanged land and $9,400 cash for equipment. The book value and the...

P. Chang & Co. exchanged land and $9,400 cash for equipment. The book value and the fair value of the land were $107,800 and $88,400, respectively.

Assuming that the exchange has commercial substance, Chang would record equipment and a gain/(loss) on exchange of assets in the amounts of:

Equipment Gain/(loss)
a. $ 97,800 $ (19,400 )
b. $ 88,400 $ (28,800 )
c. $ 107,800 $ 19,400
d. $ 107,800 $ (9,400 )

Multiple Choice

  • Option D

  • Option A

  • Option C

  • Option B

Solutions

Expert Solution

i

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Alamos Co, exchanged equipment and $18,000 cash for similar equipment. The book value and the fair...
Alamos Co, exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000 respectively. Assuming that the exchange has commercial substance, Alamos would record a gain (loss) of: Prepare the journal entry for the above transaction.
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and...
The Bronco Corporation exchanged land for equipment. The land had a book value of $126,000 and a fair value of $162,000. Bronco received $16,000 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.
Stanton exchanged its old equipment for a new equipment:               Book Value     Fair Value       Cash Paid Case I &nbs
Stanton exchanged its old equipment for a new equipment:               Book Value     Fair Value       Cash Paid Case I  $300,000         $340,000         $60,000 Case II $200,000         $180,000         $28,000 Stanton records the following items in Case I (with and without C.S.)?             Record the new equipment at:                                  Record a gain of (loss) of: Stanton records the following items in Case II (with and without C.S.)?             Record the new equipment at:                                  Record a gain of (loss) of:
Arizona Pharmacueticals exchanged laser equipment with a book value of $70,000 and a fair value of...
Arizona Pharmacueticals exchanged laser equipment with a book value of $70,000 and a fair value of $75,000 for the newer model of laser equipment. In addition to the old equipment, $90,000 cash was given. Please display the proper journal entries from Arizona pharmaceuticals' point of view.
A. Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of...
A. Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $20,000 (original cost of $65,000 less accumulated depreciation of $45,000) and $17,000, respectively. Assume Calaveras paid $8,000 in cash and the exchange has commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange? B. A company constructs a building for its own use. Construction...
1.Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the...
1.Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $36,000 (original cost of $89,000 less accumulated depreciation of $53,000) and $48,000, respectively. Assume Calaveras paid $7,000 in cash and the exchange lacks commercial substance. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange? Value of Pick Up Trucks= Gain/Loss= 2.Calaveras Tire exchanged equipment for two pickup trucks....
1.      Washington Co. exchanged nonmonetary assets with Stranger Co. No cash was exchanged and the exchange...
1.      Washington Co. exchanged nonmonetary assets with Stranger Co. No cash was exchanged and the exchange had no commercial substance. The carrying amount of the asset surrendered by Washington exceeded. Both the fair value of the asset received and Stranger’s carrying amount of that asset. Washington should recognize the difference between the carrying amount of the asset it surrendered and a.       The fair value of the asset it received as a loss. b.      The fair value of the asset it...
Margot Co. exchanged equipment with Wiese Co. The following information pertains to the two pieces of...
Margot Co. exchanged equipment with Wiese Co. The following information pertains to the two pieces of equipment: Margot Co.      Original Cost                          $ 250,000 Accumulated Depreciation         100,000 Market Value                              200,000 Wiese Co. Original Cost                          $ 300,000 Accumulated Depreciation          140,000 Market Value                              190,000 Wiese pays $10,000 to Margot. Assume that the assets exchanged are similar and the transaction lacks commercial substance. Assume that the transaction has commercial substance. Indicate the amounts recognized by Margot and Wiese at the...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000, and declared and paid dividends during 2021. No new notes payable were issued during the year. Financial data follows.  All balances are normal.   Balance Sheet Dec. 31, 2021 Dec. 31, 2020 Change Cash $  36,000 $29,000 $  7,000 Accounts receivable   125,000 97,000 28,000 Inventory    100,000 114,000 (14,000) Equipment 740,000 600,000 140,000 Accum. depreciation 370,000 220,000 150,000 Accounts payable 170,000 150,000 20,000 Unearned revenue 74,000 44,000 30,000 Accrued...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000, and declared and paid dividends during 2021. No new notes payable were issued during the year. Financial data follows.  All balances are normal.   Balance Sheet Dec. 31, 2021 Dec. 31, 2020 Change Cash $  36,000 $29,000 $  7,000 Accounts receivable   125,000 97,000 28,000 Inventory    100,000 114,000 (14,000) Equipment 740,000 600,000 140,000 Accum. depreciation 370,000 220,000 150,000 Accounts payable 170,000 150,000 20,000 Unearned revenue 74,000 44,000 30,000 Accrued...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT