The Tuvok Company exchanged an old asset with a $125,700 tax basis and a $155,000 FMV for a new asset with a $147,250 FMV. Assume that chis transaction is a like-kind exchange. Write all numbers with a comma, but no dollar sign (example: 130,000).
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A: Amount Manama should record for the assets received = Book value of assets given + cash paid
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A: GIVEN In 20X6, Hat Corporation exchanged an apartment complex in Dallas (purchased in 10 * 2 cost…
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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…
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A: Formula: Gain on exchange = Cash received on exchange + fair value of computer - Undepreciated.…
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: 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…
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A: If an exchange has commercial substance then it should be accounted for the fair value. Gain is…
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A: Journal entry - It refers to the process where the business transactions are recorded in the books…
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A: Solution: Asset received in exchange will be recorded at book value of asset given up plus any cash…
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…
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A: This question deals with the IAS 16 "Property plant and equipment". When non monetary asset is…
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A: Here PFRS will apply
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A: Given that, Building 24 Data - appraised value of building $1,700,000 cost of building $2,800,000…
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…
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A: When ever an Equipment has a commercial substance then the Equipment is to be recorded at Fair value…
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: Zara corporation decided to exchange its old machine that costs $100,000 with a new one. On January…
A: Correct option is A. $40,000
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A: An exchange has commercial substance if an entity expects the likelihood, the timing, or quantity of…
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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: 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: 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: 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: in the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had…
A: Tax basis of new building = (Cost of old building - accumulated depreciation) + Cash paid
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: Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…
A: The carrying value of an asset is the value at which the company records the asset in its balance…
Q: A lathe priced at a fair market value of $124,000 is acquired in a transaction that has commercial…
A: Book value: The amount of acquisition cost of asset, less accumulated depreciation as on a…
Q: Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery…
A: Solution: Amount at which new truck should be recorded on Parr's book = Cash paid + Fair value of…
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: On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated…
A: The non cash assets acquired in exchange process is recorded at fair market value in the accounting…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: If exchange lacked commercial , there will be no profit or loss and exchange will be recorded at…
Q: Bonnie Inc. and Clyde Company have an exchange with no commercial substance. The asset given up by…
A: Amount Bonnie should record for the asset received=Book value of asset given up+cash…
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: 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: C Inc. and D Co. have an exchange with no commercial substance. The asset given up by C Inc. has a…
A: If exchange has no commercial substance, there will be no profit or loss and exchange will be…
Q: Jowee Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine…
A: Where an asset is exchanged with another asset and the new assets is expected to have commercial…
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- Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a very similar machine. In addition, Wolf paid $6,000 as part of the exchange. Wolf should recognize and gain or loss of what amount?A lathe priced at a fair market value of $124,000 is acquired in a transaction that has commercial substance by trading in a similar lathe and paying cash for the difference between the trade-in allowance of $45,000 and the price of the new lathe. Assuming that the book value of the lathe traded in is $36,000, what is the gain or loss on the exchange?Huling Associates plans to transfer $300,000 of accounts receivable to Mitchell Inc. in exchange for cash. Huling has structured the arrangement so that it retains substantially all the risks and rewards of ownership but shifts control over the receivables to Mitchell. Assuming all other criteria are met for recognizing the transfer as a sale, how would Huling account for this transaction under IFRS? Under U.S. GAAP?
- Sheffield Corporation wishes to exchange a machine used in its operations. Sheffield has received the following offers from other companies in the industry. 2. 3. Tamarisk Company offered to exchange a similar machine plus $30,820. (The exchange has commercial substance for both parties) Vaughn Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Bramble Company offered to exchange a similar machine, but wanted $4,020 in addition to Sheffield's machine. (The exchange has commercial substance for both parties.) In addition, Sheffield contacted Sunland Corporation, a dealer in machines. To obtain a new machine, Sheffield must pay $124,620 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair valut Sheffield $214,400 80,400 123,280 Tamarisk Vaughn Bramble $160,800 $203,680 $214,400 60,300 95.140 100,500 92,460 123,280 127,300 Sunland $174.200 -0- 247,900 For each of the four independent situations,…A brokerage company made the following deals: Calculate the result (profit or loss?) * 10.00 a.m.: GBP / USD: 1.2892;10 million USD are sold; GBP are purchased , * 10.01 a.m.: EUR / GBP: 0.8760;GBP amount is sold against EUR , *10.02 a.m.: EUR / USD: 1.1285;EUR are sold against USDHeadland Corporation wishes to exchange a machine used in its operations. Headland has received the following offers from other companies in the industry. 1. 2. 3. Sage Company offered to exchange a similar machine plus $28,520. (The exchange has commercial substance for both parties.) Pronghorn Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Stellar Company offered to exchange a similar machine, but wanted $3,720 in addition to Headland's machine. (The exchange has commercial substance for both parties.) In addition, Headland contacted Pearl Corporation, a dealer in machines. To obtain a new machine, Headland must pay $115,320 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Headland $198,400 74,400 114,080 Sage $148,800 55,800 85,560 Pronghorn Stellar $188,480 $198,400 88,040 114,080 93,000 117,800 Pearl $161,200 -0- 229,400
- Sheridan Corporation wishes to exchange a machine used in its operations. Sheridan has received the following offers from other companies in the industry. 1. Skysong Company offered to exchange a similar machine plus $26,220. (The exchange has commercial substance for both parties.) Concord Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Marigold Company offered to exchange a similar machine, but wanted $3,420 in addition to Sheridan's machine. (The exchange has commercial substance for both parties.) In addition, Sheridan contacted Swifty Corporation, a dealer in machines. To obtain a new machine, Sheridan must pay $106,020 in addition to trading in its old machine. Sheridan Skysong Concord Marigold Swifty Machine cost $182,400 $136,800 $173,280 $182,400 $148,200 Accumulated depreciation 68,400 51,300 80,940 85,500 -0- Fair value 104,880 78,660 104,880 108,300 210,900 For each of the four independent situations, prepare the…Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit. These terms will affect the cost of the asset for both the buyer and the seller. Consider the following case: Tasty Tuna Corporation buys on terms of 3/15, net 45 from its principal supplier. If Tasty Tuna receives an invoice for $856.75, then the true price of this invoice is . The supplier is willing to extend credit that exhibits a nominal annual cost of . Suppose Tasty Tuna doesn’t take the discount and instead chooses to pay its supplier five days' late—so that on average, Tasty Tuna will pay its supplier on the 50th day after the date of sale. As a result, Tasty Tuna can decrease its actual nominal cost of trade credit by by paying late.Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance for both parties.) 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Liston Company offered to exchange a similar machine, but wanted $3,000 in addition to Holyfield’s machine. (The exchange has commercial substance for both parties.) In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay $93,000 in addition to trading in its old machine. Holyfield Dorsett Winston Liston Greeley Machine cost $160,000 $120,000 $152,000 $160,000 $130,000 Accumulated depreciation 60,000 45,000 71,000 75,000 –0– Fair value 92,000 69,000…
- Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance for both parties.) 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Liston Company offered to exchange a similar machine, but wanted $3,000 in addition to Holyfield’s machine. (The exchange has commercial substance for both parties.) In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay $93,000 in addition to trading in its old machine. Holyfield 0Dorsett0 0Winston0 0Liston0 0Greeley0 Machine cost $160,000 $120,000 $152,000 $160,000 $130,000 Accumulated depreciation 60,000 45,000 71,000…(1) On 31/12 / 20Χ0 the company V Corporation acquired a machine on credit. For the repayment, the company will pay an amount of € 7,000 on 31/12 / 20X0, an amount of € 5,000 on 31/12 / 20X1 and an amount of € 5,000 on 31/12 / 20X2.The usual credit terms are the full repayment of the price with the purchase. The annual market rate for these cases is 14%. Relevant calendar entries are requested assuming that V Corporation complies with IAS.Sheridan Corporation wishes to exchange a machine used in its operations. Sheridan has received the following offers from other companies in the industry. 1. Skysong Company offered to exchange a similar machine plus $26,220. (The exchange has commercial substance for both parties.) 2. Concord Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Marigold Company offered to exchange a similar machine, but wanted $3,420 in addition to Sheridan's machine. (The exchange has commercial substance for both parties.) In addition, Sheridan contacted Swifty Corporation, a dealer in machines. To obtain a new machine, Sheridan must pay $106,020 in addition to trading in its old machine. Sheridan Skysong Concord Marigold Swifty Machine cost $182,400 $136,800 $173,280 $182,400 $148,200 Accumulated depreciation 68,400 51,300 80,940 85,500 -0- Fair value 104,880 78,660 104,880 108,300 210,900 For each of the four independent situations, prepare…