Question
In: Accounting
The Tinsley Company exchanged land that it had been holding for future plant expansion for a...
The Tinsley Company exchanged land that it had been holding for
future plant expansion for a more suitable parcel located farther
from residential areas. Tinsley carried the land at its original
cost of $50,000. According to an independent appraisal, the land
currently is worth $120,000. Tinsley paid $16,000 in cash to
complete the transaction.
Required:
1. What is the fair value of the new parcel of
land received by Tinsley assuming the exchange has commercial
substance?
2. Prepare the journal entry to record the
exchange assuming the exchange has commercial substance.
3. Prepare the journal entry to record the
exchange assuming the exchange lacks commercial substance.
4. Prepare the journal entry to record the
exchange except that Tinsley received $24,000 in the
exchange, and the exchange lacks commercial substance.
What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?
Record the exchange of land assuming the exchange has commercial substance.
|
Record the exchange of land assuming the exchange lacks commercial substance.
|
Record the exchange except that Tinsley received $24,000 in the exchange, and the exchange lacks commercial substance.
|
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The Tinsley Company exchanged land that it had been holding for future plant expansion for a...
The Tinsley Company exchanged land that it had been holding for
future plant expansion for a more suitable parcel located farther
from residential areas. Tinsley carried the land at its original
cost of $35,000. According to an independent appraisal, the land
currently is worth $84,000. Tinsley paid $17,000 in cash to
complete the transaction.
Required:
1. What is the fair value of the new parcel of
land received by Tinsley assuming the exchange has commercial
substance?
2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a...
The Tinsley Company exchanged land that it had been holding for
future plant expansion for a more suitable parcel located farther
from residential areas. Tinsley carried the land at its original
cost of $35,000. According to an independent appraisal, the land
currently is worth $84,000. Tinsley paid $17,000 in cash to
complete the transaction. Required: 1. What is the fair value of
the new parcel of land received by Tinsley assuming the exchange
has commercial substance? 2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a...
The Tinsley Company exchanged land that it had been holding for
future plant expansion for a more suitable parcel located farther
from residential areas. Tinsley carried the land at its original
cost of $106,250. According to an independent appraisal, the land
currently is worth $255,000. Tinsley paid $34,000 in cash to
complete the transaction.
Required:
1. What is the fair value of the new parcel of
land received by Tinsley assuming the exchange has commercial
substance?
2. Prepare the journal...
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas.
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley paid $14,000 in cash to complete the transaction.
Required:
1. What is the fair value of the new parcel of land received by Tinsley?
2. Prepare the journal entry to record the exchange...
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