[The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor h (original cost of $33,000 less accumulated depreciation of $18,500) and a fair value o $25,000 cash to complete the exchange. The exchange has commercial substance. Case R Kanono Farms exchanged acres of farmland for similar land The farmlan
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: Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book…
A: 1.
Q: Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in…
A:
Q: Sullivan Corp. exchanged one of their buildings (Building 24), which, on the date of exchange, has…
A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…
Q: In 20X6, Hat Corporation exchanged an apartment complex in Dallas (purchased in 20X2; cost $540,000;…
A: GIVEN In 20X6, Hat Corporation exchanged an apartment complex in Dallas (purchased in 10 * 2 cost…
Q: Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract…
A: SOLUTION-3 GIVEN, PARTICULARS HARGLOS KALMANS COST & BOOK VALUE $160000 $100000 FAIR…
Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…
A: 1.
Q: Can you please help me with by giving the solution and answer? GEE Company and EYCH Inc. decided to…
A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…
Q: Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse…
A: Appraised Value: It is an evaluation of a property's value (Eg:Land, Warehouse) based on a given…
Q: MARU S.A. de C.V., a Mexican corporation that follows IFRS, has elected to use therevaluation model…
A: Revaluation of assets means revaluing the asset from its cost to fair value as on different…
Q: Robertson Company exchanged a machine for some land. The machine had cost $17,000, was 70%…
A: Formula to compute new machine amount to be recorded:New machine amount = Sale value of the new…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: Value of the pickup trucks = Fair value of equipment + Cash paid
Q: Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract…
A: Financial reporting refers to the reporting of the financial information in the financial statements…
Q: Princess and Sarah, two unrelated entities, agreed to exchange tractor trailers. Information…
A: The question is based on the concept Accounting standard on Property, Plant and Equipment.
Q: he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: PERIODIC REGULAR Co. acquired a building on January 1, 20x1 for a total cost of ₱24,000,000 and…
A: Fair Value Model - According to IAS - 40, Investment in property again measured at fair value of the…
Q: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…
A: Disposal of assets: Disposal is an activity of selling the worn-out assets that is no longer in need…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…
A: GIVEN The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…
Q: Cooper and Dane exchanged properties with each other. Cooper exchanged a commercial building and…
A: Realized Gain is the amount realized or profit from the sale of capital asset.
Q: Bro exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying…
A: Assets can be purchased in exchange of other assets and in addition of some cash, but the criteria…
Q: For financial reporting purposes, Kalman would recognize a gain on this exchange in the amount of a.…
A: An asset exchange transaction occurs when one asset is exchanged to acquire another asset. These…
Q: Salad Express exchanged land it had been holding for future plant expansion for a more suitable…
A: Land is a non-current asset that is held and owned by an entity for the purpose of running its…
Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…
A: 1. This is an exchange which has commercial substance. Thus, the fair value of new land is…
Q: Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000…
A: When a fixed asset is exchanged for another fixed asset and the exchange has commercial substance,…
Q: Assume that Abdul Baari LLC acquiring a new truck for OMR 45000. In exchange, the company pays OMR…
A: Loss on exchange of truck = Cash paid + Net book value of truck given - Value of new truck =…
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: Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of…
A: When a fixed asset is exchanged for another fixed asset and the exchange has commercial substance,…
Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $77,000 and…
A: Note: When there is commercial substance exist in the exchange of assets transaction, then new…
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: PERIODIC REGULAR Co. acquired a building on January 1, 20x1 for a total cost of ₱24,000,000 and…
A: The value of assets decreases every with a specific amount, which is called depreciation.…
Q: Concord Corporation purchased the assets of Ivanhoe Company at an auction for $5640000. An…
A: Total of Relative fair values Land $1830000 Building 2910000 Equipment 2250000 Trucks…
Q: The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The…
A: Goodwill = Purchase consideration - Net assets Where. Net assets = Fair value of total assets - Fair…
Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $600,000.…
A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…
Q: Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value…
A: 1.
Q: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…
A:
Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…
A: Since multiple subparts are posted, only the first three will be answered.
Q: Two independent companies, Ball and Brown, are in the home building business. Each owns a tract of…
A: Here given the details of the cost of the land and its difference in the Appraisal value of the land…
Q: amount of gain or loss should Fortune Company recognize as a result of change in fair value on…
A: Fair Value of dairy cattle as on July 1,2022: Purchase price :…
Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…
A: Calculate the amount at which Calaveras value the pickup trucks.
Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…
A: Recorded value of new Truck = Fair value of the new Truck received where, Fair value of the new…
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: For intangible assets such as a franchise, what costs do you amorizite and how much do you…
A: Franchise: A franchise is a business, in which a franchisor gives a right to franchisee to operate a…
Q: 'he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Two construction companies, Harglo and Kalman, are in the construction business. Each owns a tract…
A: In the above question, the following information is provided: Fair value of land grounded on…
Q: Salad Express exchanged land it had been holding for future plant expansion for a more suitable…
A: An asset is the total value of items owned by the business or firm. It can be tangible or intangible…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Required information [The following information applies to the questions displayed below.] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $13,500 (original cost of $31,000 less accumulated depreciation of $17,500) and a fair value of $9,300. Kapono paid $23,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $515,000 and a fair value of $730,000. Kapono paid $53,000 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. Assume the fair value of the old tractor is $17,000 instead of $9,300. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Complete this question by entering…Required information [The following information applies to the questions displayed below] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $20,500 (original cost of $45,000 less accumulated depreciation of $24,500) and a fair value of $10,700. Kapono paid $37,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $585,000 and a fair value of $870,000. Kapono paid $67,000 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 land? 2. Assume the fair value of the farmland given is $468,000 instead of $870,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? 3. Assume the same facts as…Case A. 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 ofthe new tractor?2. Repeat requirement 1 assuming that the fair value of the old tractor is $14,000 instead of $9,000.
- 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 $9,000.4 Required information [The following information applies to the questions displayed below] Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,000 (original cost of $36,000 less accumulated depreciation of $20,000) and a fair yalue of $9,800. Kapono paid $28,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $540,000 and a fair value of $780,000. Kapono paid $58,000 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. Assume the fair value of the old tractor is $22,000 instead of $9,800. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor? Complete this question by entering…Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,500 (original cost of $37,000 less accumulated depreciation of $20,500) and a fair value of $9,900. Kapono paid $29,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $545,000 and a fair value of $790,000. Kapono paid $59,000 cash to complete the exchange. The exchange has commercial substance. Required: What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the fair value of the farmland given is $436,000 instead of $790,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that…
- Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $14,000 (original cost of $32,000 less accumulated depreciation of $18,000) and a fair value of $9,400. Kapono paid $24,000 cash to complete the exchange. The exchange has commercial substance. Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had book value of $520,000 and a fair value of $740,000. Kapono paid $54,000 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 land? 2. Assume the fair value of the farmland given is $416,000 instead of $740,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? 3. Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss…1. Denver, Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000 a few years ago and a fair value of $60,000. Prepare the journal entry to record the exchange. Assume the exchange has no commercial substance. 2. Metro Inc. trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (original cost of $12,000) and a fair value of $4,000. The new model lists for $15,000. Denver gives Metro a trade-in allowance of $7,000 for the used machine, $3,000 more than its fair value. Prepare a journal entry for Metro, assuming commercial substance.The Bronco Corporation exchanged land for equipment. The land had a book value of $136,000 and a fair value of $182,000. Bronco paid the owner of the equipment $26,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the fair value of the equipment? Fair value
- Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in allowance and paying the remaining $83,000 in cash. The old tractor had cost $96,000 and had accumulated depreciation of $52,500. Answer the following questions assuming the exchange has commercial substance. 1. What is the book value of the old tractor at the time of exchange? 2. What is the loss on this asset exchange? 3. What amount should be recorded (debited) in the asset account for the new tractor?The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 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.Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb exchanges the machine for a newer model that has a market value of $56,000. Record the exchange assuming Caleb paid $31,800 cash and the exchange has commercial substance. Record the exchange assuming Caleb paid $23,800 cash and the exchange has commercial substance.