amount of loss
Q: A and B have an exchange with no commercial substance. The equipment given up by A has a historical…
A: Exchange of Assets It is important to recognize gain or loss at the time of exchange of assets…
Q: Vice Corporation is considering replacing a machine that it uses in its operations. Companies that…
A: Answer (c) P 1,025,000 A machine is purchased by Vice Co from Willie Co. by the following terms:-…
Q: Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old…
A: If the transaction has commercial substance, new asset will be recorded at its fair value and any…
Q: (i)Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Manama Co, and Muharraq Co. have an exchange with no commercial substance. The asset given up by…
A: Amount Manama should record for the assets received = Book value of assets given + cash paid
Q: Mirabel Company has an old equipment that cost P700,000 with an accumulated depreciation of…
A: In case of exchange of equipments having commercial substance, equipment sold and equipment acquired…
Q: Parr Company traded in a used delivery truck with a carrying amount of P54,000 fora new delivery…
A: If exchange have commercial substance, the value of new assets will be recorded at faie value of…
Q: Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has…
A: For sale of used Truck Particulars Debit ($) Credit ($) Bank A/c 3,000 Accumulated…
Q: Karlene Company and Erika Company are fuel oil disti ers. To facilitate the delivery of oil to…
A: Concept of Valuation of Inventory
Q: Below is the information relative to an exchange of old equipment for new equipment by Ehrlich…
A: As per provisons of IFRS, where the exchange of assets takes place then the new asset shall be…
Q: On 1 July 20X7, The Pyretus Company, a manufacturer of office furniture, supplied goods to The…
A: The revenue is recognized, when 1) it is probable that any future economic benefit associated with…
Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…
A: Proof required of purchase of the above assets are : Invoice / receipt : It is a document which…
Q: Khong Guan has negotiated the purchase of a new piece of automatic equipment at a price of HK$7,000…
A: Exchange has commercial substance. Automatic Equipment Accumulated Depreciation - Equipment…
Q: Joshua Company and Kryzel Company are fuel oil distribution. To facilitate the delivery of oil to…
A: Here discuss about the details of the exchange of inventory without transfer the physical presence…
Q: Buchanan Imports purchased McLaren Corporation for $4,500,000 cash when McLaren had net assets worth…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a…
A: Formula: Gain = Fair value of B vehicle - Company A machine value
Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…
A: Following are the answers to the given questions
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: When exchange lack commercial substance exist, the exchange of assets would be recorded at cost of…
Q: Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck…
A: When a fixed asset is exchanged for another fixed asset and the exchange has commercial substance,…
Q: Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference…
A: Property, Plant, and Equipment or PP&E is a classification shown on a balance sheet. It normally…
Q: Mary Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with…
A: Accumulated depreciation on equipment = Cost of equipment x depreciation % = $40,000 x 75% = $30,000
Q: Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a…
A: Loss or gain on the exchange = Fair value of asset - Book value of asset
Q: On March 31, 2005 JJ Enterprise traded in an old machine having a carrying amount of P1,600,000 and…
A: Total loss recognized on exchange = carrying amount of old machine + cash paid - total cash price…
Q: Romanova Inc. decides to sell an old piece of equipment and receives $5,000 cash for it. The…
A: Net book value of equipment = Original cost - Accumulated depreciation = $50,000 - $47,000 = $3,000
Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…
A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…
Q: Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has…
A: Solution: Asset received in exchange will be recorded at book value of asset given up plus any cash…
Q: Cheng Company traded a used truck for a new truck. The used truck cost $30,000 and has accumulated…
A: Given information: Cost of an old truck $30,000 Accumulated depreciation $27,000 Cost of…
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: As per IAS 16, Property, plant and Equipment If asset is purchased for value which includes payment…
Q: KAJ Incorporated purchased a machine costing $250,000 by paying $35,000 and signing a $215,000 note…
A: Cash flow from Financing activities: Cash flow from Financing activities include transactions…
Q: On March 31, 2019, ABC Enterprises traded in an old machine having a carrying amount of P1,600,000…
A: Assets means the resources owned by company. When amount received at the time of sale of assets is…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…
Q: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN's non- monetary asset…
A: The exchange has significantly changed the cash flows of each entity. the value of new assets will…
Q: On January 1, 2021, ABC Co. traded in an old equipment with carrying amount of P,1680,000 for a new…
A: In exchange for the asset, the cost of the new asset will be the carrying the value of the old asset…
Q: X-ray company traded in an old machine having a carrying amount of 16,800 and paid a cash difference…
A: It is pertinent to note that if Property, Plant and Equipment is acquired in exchange of a…
Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: ZY Corporation exchanges its old equipment and USD100,000 cash for new equipment. The old equipment…
A: The cost of new equipment is calculated as sum of book value of old asset and cash paid for…
Q: Company A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a…
A: If exchange have commercial substance, the sales value of assets & Purchase value of assets…
Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…
A: Journal is a primary book where transactions are originally recorded. Further, a journal entry is…
Q: At the beginning of the current year, Junk Company traded in an old machine having a carrying amount…
A: Total purchase consideration = Carrying value of old machinery + cash paid = P1680000 + 600000 =…
Q: Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business…
A: The acquisition of assets is a part of business activities. When the company disposes of the asset…
Q: ABC Co. traded a used equipment with a book value of P6,800 and a fair market value of P9,200 for a…
A: Here the problem relating to the exchange of fixed assets. To record the transaction for old…
Q: Yin Co traded in an old machine having a carrying amount of P16,800, and paid a cash difference of…
A: Carrying value of an asset refers to the value that is the difference of original cost of asset and…
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: If exchange of assets lacks commercial substance , i.e. fair values are not reliable then Property…
Q: Cullumber Company traded machinery with a book value of $525000 and a fair value of $1025000. It…
A: The company is required to record a gain in the books of accounts for the exchange of assets if the…
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…
Q: Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below…
A: Calculation of Initial Value of New Asset Initial value of New Asset Fair Value of…
Q: Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old…
A: An exchange between two parties means when one party provides something, the other party also…
Winn Company exchanged an old machine having a carrying amount of P16,800, and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. The
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- Yin Co traded in an old machine having a carrying amount of P16,800, and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. What amount of loss should Yin Co. recognized on this exchange?Ray Company traded in an old machine having a carrying amount of P16,800 and paid a cash difference of P6,000 for a new machine having a total cash price of P20,500. What amount of loss should Ray recognized on this exchange?X-ray company traded in an old machine having a carrying amount of 16,800 and paid a cash difference of P 6,000 for a new machine having a total cash price of P20,500. What amount of loss should X-ray Company recognize on this exchange?
- Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old machine has a book value of $1,400,000 and a fair value of $2,400,000 on the date of the exchange. If this transaction has commercial substance, the cost of the new machine would be recorded atTainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old machine has a book value of $1,400,000 and a fair value of $2,400,000 on the date of the exchange. If this transaction has commercial substance, the cost of the new machine would be recorded at a.$5,000,000. b.$4,000,000. c.$2,600,000. d.cannot be determined.
- Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company A? P120,000 gain P120,000 loss P30,000 loss P60,000 gainCompany A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company A? a. P60,000 gain b. P30,000 loss c. P120,000 loss d. P120,000 gainCompany A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a carrying amoung of 300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional 90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is 420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?
- CAKE Corporation exchanged a piece of equipment for new equipment. Data pertaining to the old equipment follows: Cost-P500,000; Accumulated Depreciation, P300,000; Fair value of old equipment, P180,000. The fair value of the new equipment is P230,000 and CAKE Corporation paid P50,000 to complete the exchange transaction. Assuming the configuration of the cash flows of the equipment is significantly different, how much is the gain or loss on exchange?A machine costing P120,000, with accumulated depreciation of P95,000, and a fair market value of P27,500, was exchanged for a new machine with a fair value of P135,000 and the proper amount of cash is paid. The exchange has commercial substance. The amount of cash involved in the exchange amounts toOn March 31, 2005 JJ Enterprise traded in an old machine having a carrying amount of P1,600,000 and paid cash difference of P600,000 for a new machine having a total cash price of P2,000,000. On March 31,2005, what amount of loss should JJ recognize on this exchange?