Coronado Inc. and Wildhorse Co. have an exchange with no commercial substance. The asset given up by Coronado Inc. has a book value of $53000 and a fair value of $88000. The asset given up by Wildhorse Co. has a book value of $118000 and a fair value of $111000. Boot of $23000 is received by Wildhorse Co. What amount should Coronado Inc. record for the asset received? $118000 $76000 $111000 $88000

Q: Sheridan Company traded machinery with a book value of $746650 and a fair value of $685000. It…

A: Commercial substance: It exists in business transactions where the outcome is anticipated to cause…

Q: Abbott exchanges land in a transaction that lacks commercial substance. The net book value of the…

A: The question says that, there is an exchange of land. If the value of land given is less than the…

Q: On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because…

A: IFRS 15 provides that At Commencement date, Lessee measures the ROU asset at proportion of the…

Q: Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange…

A: Loss on exchange=Warehouse(old)-Accumulated depreciation-Fair value=$100,000-$52,000-$43,000=$5,000

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: Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love…

A: Book value of asset given up = P12,000 Cash paid = P4,000 Amount to be recorded by Love Inc. = Book…

Q: On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because…

A: All amount are in (P).

Q: On January 1, 2021, Globe Company sold a piece of machinery to Troll Company for P1,900,000. Because…

A: Lessee(Seller) recognizes the gain that relates to the rights transferred to the lessor (buyer) and…

Q: Alamos Co, exXchanged equipment and $18,500 cash for similar equipment. The book value and the fair…

A: Accounts Titles  Debit Credit Equipment - new [ Fair value + Cash] (91500+18500) $110000…

Q: Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a…

A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…

Q: On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of…

A: In the books of Robers Company: Value of equipment = Fair value of equipment - Cash paid  = $75,000…

Q: Payor Inc. and Recipient Co. have an exchange with no commercial substance. The asset given up by…

A: In case of exchange transaction lacks commercial substance or fair value of neither the asset given…

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: 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: ABC Co. traded a used equipment with a book value of P6,800 and a fair market value of P9,200 for a…

A: If an exchange has commercial substance then it should be accounted for the fair value. Gain is…

Q: Bella company entered into an exchange agreement of exchanging its equipment for two pickup…

A: In the case of an exchange, the new asset should be recorded at its fair value.

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: Beeman Company exchanged machinery with an appraised value of $3,538,500, a recorded cost of…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN’s non-monetary asset…

A: This question deals with the IAS 16 "Property plant and equipment". When non monetary asset is…

Q: FAITH Inc and HOPE Co. have an exchange with no commercial substance. The asset given up by FAITH…

A: Here discussing the factors of exchanging the assets with no commercial substance with this on the…

Q: On March 1Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…

A: The asset acquired by the company is recorded at fair value of the asset in the books of the…

Q: Sheffield Inc. and Pharoah Co. have an exchange with no commercial substance. The asset given up by…

A: When there is  no commercial substance, asset should be recorded at the book value of asset given…

Q: Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to…

A: An entity can purchase of sale of asset in exchange of cash or its own asset or a combination of…

Q: 3) Jersey Inc. and Texas Co. have an exchange with no commercial substance. The asset given up by…

A: Please find the attached image.

Q: Brooks LLC exchanged machinery with an appraised value of $4,600,000, a recorded cost of $7,200,000…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…

A:

Q: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…

A: The old assets by the business are sold at carrying value and new assets are acquired at fair value…

Q: ABC Inc. and XYZ Co. have an exchange with no commercial substance. The asset given up by ABC Inc.…

A: An exchange has commercial substance if an entity expects the likelihood, the timing, or quantity of…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Commercial Substance: If there is a change in future cash flow of the business as result of business…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill is refereed as the reputation of the business which is an intangibles asset that does not…

Q: Foxtrot Co, exchanged equipment and $17,100 cash for similar equipment. The book value and the fair…

A: As per IAS 16 of property plant and equipment of international financial reporting standards.  If…

Q: Misha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land A’s…

A: Misha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land A’s…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: When fixed assets is exchange , then fair value of assets exchange should be determined and compared…

Q: Michelle Company. exchanges the rights to distribute a product in Brisbane which have a carrying…

A: A right issue is the invitation to the existing shareholders of the entity to purchase the…

Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

A: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…

Q: Jersey Inc. and Texas Co. have an exchange with no commercial substance. The asset given up by…

A: The old assets given up by the company are recorded at book value of the particular asset.

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: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…

A: Note: When commercial substance exists in the exchange of assets transaction, new assets are…

Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…

A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…

Q: Vaughn Inc. and Cullumber Co. have an exchange with no commercial substance. The asset given up by…

A: Value of assets received = Book value of assets Given + Cash paid/Value of assets given

Q: XYZ Company exchanges the rights to distribute a product in Brisbane which have a carrying amount of…

A: The question is related to acquisition of Intangible asset in exhange for another Intangible asset.…