*E9-15B Presented below are two independent transactions. Both transactions have commercial substance. 1. Rees Co. exchanged old trucks (cost $74,000 less $42,000 accumulated depreciation) plus cash of $29,000 for new trucks. The old trucks had a fair value of $25,000. 2. Keller Inc. trades its used machine (cost $20,000 less $14,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $8,000), Keller also paid cash of $17,000. Instructions (a) Prepare the entry to record the exchange of assets by Rees Co. (b) Prepare the entry to record the exchange of assets by Keller Inc.

Italy Corp. exchanged Building 24, which has an appraised value of $1,700,000; a cost of $2,800,000 and accumulated depreciation of $1,300,000, for Building M, which belongs to Russia Ltd.   Building M, has an appraised value of $1,580,000, a cost of $3,100,000, and accumulated Depreciation of $1,750,000. Russia paid Italy $120,000 cash, which is equal to the difference between the appraised values of the two buildings. Assume depreciation has been recorded by both companies up to the date of exchange.  Required: Prepare the entries on both companies’ books, assuming no commercial substance.

A company recently traded in an older model of equipment for a new model. The old model's book value was $216,000 (original cost of $476,000 less $260,000 in accumulated depreciation) and its fair value was $240,000. The company paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet

Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $20,200 No. Account Titles and Explanation (a) Exchange has commercial substance: 12,800 14,300 8,100 6,700 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Debit Credit

Bramble Corporation traded a used truck for a new truck. The used truck cost $25,400 and has accumulated depreciation of $21,590. The new truck is worth $44,450. Bramble also made a cash payment of $41,910. Prepare Bramble's entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Debit I Credit

A company exchanged old equipment and $18,200 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,800, respectively. Assuming that the exchange has commercial substance, the company would record a gain(loss) of:

Foxtrot Co. exchanged equipment and $17,100 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,700, respectively. Assuming that the exchange lacks commercial substance, Foxtrot would record a gain/(loss) on exchange of assets in the amount of: Multiple Choice $(10,700). $0. $10,700. $27,800.

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $170,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Equipment - new                          ___?___ Accumulated depreciation           220,000 Loss on exchange of assets        10,000 Cash                                                                    60,000 Equipment - old                                                  400,000

Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $23,000 (original cost of $69,500 less accumulated depreciation of $46,500) and $18,500, respectively. Assume Calaveras paid $9,500 in cash and the exchange has commercial substance. (1) At what amount will Calaveras value the pickup trucks? (2) How much gain or loss will the company recognize on the exchange?

Vinubhai