On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of theexchange are as follows:Robers’ Asset Phifer’s AssetOriginal cost $120,000 $140,000Accumulated depreciation 55,000 63,000Fair value 75,000 70,000To equalize the exchange, Phifer paid Robers $5,000 in cash.Required:Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.

Q: Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same…

A: Exchange of assets means when one asset is being exchanged with another asset. Whether commercial…

Q: Machinery acquired at a cost of $80,000 and on which there is accumulated depreciation of $55,000…

A: Accumulated Depreciation: It is an accumulation of depreciation expenses that get cumulative till…

Q: On May 1, 2021, Equipment with a Cost of $50,000 and Accumulated Depreciation of $40,000 is…

A: Depreciation is being charged on cost of fixed assets in order to show reduction or decrease in…

Q: On July 1, 2021, JULIA exchanged its non-monetary asset (equipment) with GERALD's non-monetary asset…

A: (1) If a  monetary gains exists due to the exchange of the transactions then the transaction is said…

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: How much is the net foreign exchange gain (loss), recognized in surplus or deficit from the…

A: When an entity purchases on account in foreign currency, then they have to revalue that foreign…

Q: On August 1, Tamarisk, Inc. exchanged productive assets with Vaughn, Inc. Tamarisk's asset is…

A: Generally Accepted Accounting Principles -GAAPs are uniform standards for bookkeeping and financial…

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

A: The concept of an exchange of equipment refers to a transaction where two parties swap or trade…

Q: Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for…

A: Commercial substance - in a transaction is a very crucial factor in determining the cost of the…

Q: Part A On 3 January 2022, Xavier Ltd exchanged a machine with Carey Ltd. with a cost of $430 000…

A: Fixed assets are treated as Real Account in Accounting. So when purchase fixed assets then they are…

Q: On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of…

A: In accounting if a transaction is deemed to possess " significance " it indicates that the entity's…

Q: Garcia Company owns equipment that cost $84,000, with accumulated depreciation of $44,400. Record…

A: Given, Cost = $84,000 Accumulated depreciation = $44,400 Book value = Cost - Accumulated…

Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…

A: The asset is considered as something that an investor buys with an intention of making income from…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: A machine cost $1128000, has an annual depreciation of $188000, and has a accumulated depreciation…

A: Step 1: Step 2:Proper amount of cash paid means = Fair value of new asset - fair value of old…

Q: A machine cost $1104000, has annual depreciation of $184000, and has accumulated depreciation of…

A: An exchange of nonmonetary assets takes place between two entities. The accounting for nonmonetary…

Q: Gulf Company purchases Arab Company for $900,000 cash on January 2, 2019. The book value of Arab…

A: Goodwill refers to an intangible asset that is usually associated with the acquisition of a company…

Q: Pensacola Inc. purchased equipment on January 1, 2016 for $135,000.After 3 years Pensacola exchanged…

A: Cost basis means the value of an asset for tax purposes, generally, the purchase price of the asset.…

Q: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

Q: Crane Inc. and Cullumber Co. have an exchange with commercial substance. The asset given up by Crane…

A: Some companies acquired assets in cash, while others purchased assets by exchanging existing assets…

Q: Alpha Company and Beta, Inc. are both manufacturing companies that use various equipment in their…

A: In the case of lack of commercial substance, the company will not be able to record gain or loss…

Q: On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of…

A: The exchange transactions are incurred to acquire an similar assets from other company in exchange…

Q: Oriole Corp. exchanged Building 24, which has an appraised value of $1,884,000, a cost of…

A: Solution:Journal entry for Oriole Corp. :Date              Account titles Debit $Credit $Building M$…

Q: Blue Spruce Inc. trades its used machine (cost $11,900 less $4,100 accumulated depreciation) for a…

A: Derecognized Old Assets :When assets are exchanged, the assets given up are derecognized at book…

Q: Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for…

A: Commercial substance refers to the tangible impact of a transaction on a company's financial…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…

Q: Miley Corp. exchanges old equipment that costs $12,000 (accumulated depreciation of $5,400) for new…

A: Honor Code- Since you have posted a question with multiple sub parts, we will provide the solution…

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: USE THE FOLLOWING INFORMATION: The following information regarding the exchange is available: Motown…

A: To compute the basis of the new vehicle to be recorded on Motown's books, we need to consider the…

Q: Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb…

A: The objective of the question is to record the exchange of a machine owned by Caleb Company for a…

Q: Gandalf Engineering had a large Ford delivery truck it traded in for a new Mack truck. The relevant…

A: In the case of the exchange of fixed assets, it is required to calculate the book value of the old…

Q: accumulated Acquisition or Equipment depreciation of $850,000 on December 31, 2017. On April 1,…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2021, ABC Co. traded in an old equipment with carrying amount of P,1680,000 for a new…

A: In exchange for the asset, the cost of the new asset will be the carrying the value of the old asset…

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: 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…