Sandhill Inc. and Wildhorse Co. have an exchange with commercial substance. The asset given up by Sandhill has a book value of $67000 and a fair value of $86000. The asset given up by Wildhorse has a book value of $131000 and a fair value of $125000. Boot of $39000 is received by Wildhorse. Wildhorse's journal entry to record the exchange will include O a debit to Cash of $6000. O a debit to the asset account for $131000. O a debit to Loss on Disposal of $6000 O a credit to the asset account for $67000

Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same type of equipment and received $12,000 cash. The old dust scrubber cost $76,200 and had a net book value of $44,000. The new dust scrubber had a fair market value of $60,000. Prepare the journal entry to record the exchange, assuming that the exchange a) has commercial substance, and b) lacks commercial substance.

King Corp. traded an old machine with book value of $60,000 (original cost $110,000) and a fair value of $90,000.  King received a machine with a fair value of $80,000 plus cash of $10,000. 1) Prepare the journal entry to record the exchange. Assume the exchange has commercial substance.   2) Prepare the journal entry to record the exchange assuming that the exchange has nocommercial substance. ​

Company A had a machine with a carrying amount of P450,000.  Company B had a delivery vehicle with a carrying amount of P300,000.  Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange.  Assume that the fair value of the delivery vehicle is P420,000.  The exchange has commercial substance.   How much gain or loss should be recorded by Company B?

On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:   Robers’ Asset Phifer’s Asset Original cost $ 215,000 $ 235,000 Accumulated depreciation 131,000 139,000 Fair value 103,500 79,500 To equalize the exchange, Phifer paid Robers $24,000 in cash. Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Bella company entered into an exchange agreement of exchanging its equipment for two pickup vehicles. The equipment has original cost- of $32,000 and accumulated depreciation of $7,000. The fair value of equipment was $22,000 and Bella also paid cash of $7,200 for the exchange. At what amount will pick up vehicles be recorded assuming that the exchange has commercial substance. $25,000 $32,200 $22,000 $29.200

Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb exchanges the machine for a newer model that has a market value of $56,000. Record the exchange assuming Caleb paid $31,800 cash and the exchange has commercial substance. Record the exchange assuming Caleb paid $23,800 cash and the exchange has commercial substance.

Hoyle Company traded machinery with a book value of $680,000 and a fair value of $720,000. In exchange, it received a machine with a fair value of $800,000. Hoyle also paid cash of $80,000 in the exchange. What amount of gain or loss should Hoyle recognize on the exchange (assuming the exchange lacks commercial substance)? Hart Corporation owns machinery with a book value of $570,000. It is estimated that the machinery will generate future cash flows of $600,000. The machinery currently has a fair value of $420,000. How much asset impairment loss should Hart recognize?

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.

Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair value of the old equipment were $80,700 and $90,700, respectively. Assuming that the exchange has commercial substance, Alamos would record a gain/(loss) of: