SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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FAITH Inc and HOPE Co. have an exchange with no commercial substance.
The asset given up by FAITH Inc has a carrying amount of P12,000 and a fair
market value of P15,000. The asset given up by HOPE Co. has a carrying
amount of P20,000 and a fair market value of P19,000. P4,000 is received by
HOPE Co. What amount should FAITH Inc record for the asset received?
Quito, Inc., which owes Ecuador Company $1.200.000 in notes payabie. is in inuncial dilficulty
To eliminate the debt. Ecuador agrees to accept from Quino land having a fair markat value of
$810,000 and a recorded cost of S620,000.
Using the attached form, compute the amount of gain or loss to Quite. Inc.
on the transfer (disposition) of the land.
Using the attached form, compute the amount of gain or hess to Quits, Inc.
on the settlement of the debt.
Using the attached form, prepare the jeurnal enry on Quito's books o recond
the settlement of this debt. Omit explanation.
Using the attached form, compute the gain or loss to Ecuader Company brom
settlement of its receivable from Quito
Using the attached form, prepare the journal entry on Ecusdor's books tn
record the settlement of this receivable. Omit explanation
REQUIRED: (1)
(2)
(3)
(4)
(5)
C Inc. and D Co. have an exchange with no commercial substance. The asset given up by C Inc. has a book value of P12,000. The asset given up by D Co. has a book value of P20,000. Cash of P4,000 is received by D Co. What amount should C Inc. record for the asset received?
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- Dial Co. and Safeguard Inc. engage in an exchange of nonmonetary assets that LACKS commercial substance. Dial gives up an asset with a book value of $20,000 and a fair market value of $19,000. Safeguard gives up an asset with a book value of $12,000 and a fair market value of $15,000. Safeguard also paid $4,000 cash boot. What amount should SAFEGUARD record for the asset received and for the gain or loss? O $16,000 and $3,000 gain O $16,000 and $0 gain/loss O $15,000 and $0 gain/loss O $19,000 and $3,000 gainarrow_forwardJersey Inc. and Texas Co. have an exchange with no commercial substance. The asset given up by Jersey Inc. has a book value of $160,000 and a fair value of $200,000. The asset given up by Texas Co. has a book value of $260,000 and a fair value of $280,000. Boot of $80,000 is received by Texas Co. What amount should Jersey Inc. record for the asset received?arrow_forwardBryant Inc. and Rizzo Co. have an exchange that lacks commercial substance. The asset given up by Bryant Inc. has a book value of $36,500 and a fair value of $48,000. The asset given up by Rizzo Co. has a book value of $50,000 and a fair value of $40,000. Boot of $5,000 is received by Rizzo Co. What amount should Bryant Inc. record for the asset received?arrow_forward
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