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
i
ekkarill92 answered 1 year agoRelated 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...
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