Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid50,000 to Amar for this exchange. Other details of the transaction are provided below:Saman Co. equipment:Amar Inc. Building:$950,000Accumulated depreciation 150,000$750,000Accumulated depreciation 180,000CostCostFair value600,000Fair value550,000Required-a) Prepare the journal entry in the books of both companies, assuming both are publiclytraded.b) Assuming now that Saman is a private company and that the fair value of building is themost reliable fair value, prepare the journal entry for Saman Co.

If any Property , Plant & Equipment is obtained under exchange with other non monetary assets (…

Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to Amar for this exchange. Other details of the transaction are provided below: Amar Inc. Building: Saman Co. equipment: Cost Accumulated depreciation 150,000 $950,000 $750,000 Accumulated depreciation 180,000 Cost Fair value 600,000 Fair value 550,000 Required- a) Prepare the journal entry in the books of both companies, assuming both are publicly traded. b) Assuming now that Saman is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Saman Co.

Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to Amar for this exchange. Other details of the transaction are provided below: Amar Inc. Building: Saman Co. equipment: Cost Accumulated depreciation 150,000 $950,000 $750,000 Accumulated depreciation 180,000 Cost Fair value 600,000 Fair value 550,000 Required- a) Prepare the journal entry in the books of both companies, assuming both are publicly traded. b) Assuming now that Saman is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Saman Co.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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