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.

Item 22   Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid $ 49,700 $ 60,500 $ 14,100 The company would record the new equipment at:

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…

Non-Monetary Exchange Minty Inc. exchanged a large warehouse (fair value of $1,300,000; original cost of $2,000,000; accumulated depreciation of $950,000) for a warehouse that belonged to Green Ltd.  The warehouse from Green has a fair value of $1,400,000, original cost of $2,600,000, and accumulated depreciation of $1,450,000.  All amounts have been updated to the date of the exchange.  In addition to the equipment, Green paid Minty $50,000 as part of the exchange.   Required: Prepare the journal entry for Minty Inc., assuming that the exchange lacks commercial substance.

Alpesh

An airplane priced at a fair value of $750,000 is acquired in a transaction that has commercial substance by trading in a similar airplane and paying cash for the difference between the trade-in allowance and the price of the new airplane. Required: a. Assuming that the trade-in allowance is $225,000, what is the amount of cash given? b. Assuming that the book value of the airplane traded-in is $175,000, what is the gain or loss on the exchange? Show Your Work:

The following information relates to an exchange of assets by Wharton Company. The exchange lacks commercial substance.     Old Equipment     Book Value Fair Value Cash Paid Case I $75,000 $85,000 $15,000 Case II $50,000 $45,000 $7,000   For Case I, Wharton records the equipment at $ Answer    on its books and reports a gain or (loss) of $ Answer    on the exchange.

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 $15,000 (original cost of $34,000 less accumulated depreciation of $19,000) and a fair value of $9,600. Kapono paid $26,000 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 $530,000 and a fair value of $760,000. Kapono paid $56,000 cash to complete the exchange. The exchange has commercial substance. 1. What is the amount of gain or loss that Kapono would recognize on the exchange of the land? 2. Assume the fair value of the farmland given is $424,000 instead of $760,000. 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…

Equipment that cost $1,400,000 and has accumulated depreciation of $600,000 is exchanged for equipment with a fair value of $960,000 and $40,000 cash is paid. The exchange has commercial substance. The gain to be recognized from the exchange is

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