Zara corporation decided to exchange its old machine that costs $100,000 with a new one. On January 1, 2020, the company exchanged the old machine for a new one paying $15,000 cash and giving the old machine. On the date of exchange the old machine had an accumulated depreciation of $60,000 and fair value of $80,000. As a result of the exchange the company recognized: * O Gain $40,000 Gain $20,000 O Loss $45,000 Loss $65,000 O No gain or Loss

1. On November 4, 2020, GT Corporation sells a piece of its equipment. GT Corporation had initially purchased the equipment for $350,000. The company had recorded $230,000 in depreciation for this piece of equipment as of the date of sale. If GT Corporation receive $150,000 cash when they sell the equipment, they will report a November 2020 Income Statement; if they instead receive $100,000 cash when they sell the equipment, they will on their report a a. $150,000 gain; $100,000 gain. b. $80,000 gain; $130,000 loss. c. $30,000 loss; $20,000 gain. d. $30,000 gain; $20,000 loss.

Rakesh

Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. Rizzo's truck cost $22,000. It has accumulated depreciation of $15,000 and a fair value of $3,000. Overland's truck cost $10,000. It has accumulated depreciation of $8,000 and a fair value of $3,000. The transaction has commercial substance. (a) Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. 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. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit

Bomarks acquires an equipment from a foreign supplier on credit for $6 million on 31 March 2022, when the exchange rate was $1 = GH¢ 5. The entity incurred other direct costs of GH¢1.5 million in installing the equipment. The estimated useful life of the equipment is 10 years and the entity has obligation to restore the location to its original state after usage. The estimated cost of dismantling and restoration in 10 years is GH¢3.5 million and the entity’s cost of capital is 8%. Although the equipment was available for use from 1 May 2022, the entity did not bring it into use until 1 July, 2022. Bomarks also sold goods to a foreign customer for $3.5 million on 30 April 2022, when the exchange rate was $1 = GH¢5.75. The customer paid $1 million on 1 July when the rates were $1 = GH¢5.60. On that date, Bomarks paid half of the amount owed for the equipment. At the entity’s year-end of 31 December 2022, the closing exchange rate was $1 = GH¢5.9. The entity’s functional currency is the…

Susan Co. has a machine that cost $810,000 on March 20, 2017. This old machine had an estimated life of ten years and a salvage value of $30,000. On December 23, 2021, the old machine is exchanged for a new machine with a fair value of $522,000. The exchange lacked commercial substance. Susan also received $58,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. Show the calculation of the amount of gain or loss to be recognized by Susan Co. from the exchange.