Question

Equipment that cost $416,500 and has accumulated depreciation of $315,100 is exchanged for equipment with a...

Equipment that cost $416,500 and has accumulated depreciation of $315,100 is exchanged for equipment with a fair value of $200,000 and $40,000 cash is received. The exchange lacked commercial substance.

Calculate the gain to be recognized from the exchange.

Gain recognized $

Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Equipment that cost $412,900 and has accumulated depreciation of $324,200 is exchanged for equipment with a...
Equipment that cost $412,900 and has accumulated depreciation of $324,200 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance. Calculate the gain to be recognized from the exchange. Gain recognized $ List of Accounts       Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account...
Equipment that cost $600,000 and has accumulated depreciation of $475,000 is exchanged for equipment with a...
Equipment that cost $600,000 and has accumulated depreciation of $475,000 is exchanged for equipment with a fair value of $240,000 and $60,000 cash is received. The exchange lacked commercial substance. A) Calculate the gain to be recognized from the exchange B) Prepare the entry for the exchange. Show a check of the amount recorded for the new equipment.
Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a...
Equipment that cost $66,000 and has accumulated depreciation of $30,000 is exchanged for equipment with a fair value of $48,000 and $12,000 cash is received. The exchange lacked commercial substance. The new equipment should be recorded at: a. $48,000. b. $36,000. c. $30,000. *d. $28,800. Answer is d but please show work and formulas are applied.. Recognized gain?
Mehta Company traded a used welding machine (cost $27,801, accumulated depreciation $9,267) for office equipment with...
Mehta Company traded a used welding machine (cost $27,801, accumulated depreciation $9,267) for office equipment with an estimated fair value of $15,445. Mehta also paid $9,267 cash in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (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 0 for the amounts.)
Pina Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment...
Pina Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment used in the operations of Grouper Company. The following information pertains to the exchange. Pina Co. Grouper Co. Equipment (cost) $34,720 $34,720 Accumulated depreciation 23,560 12,400 Fair value of equipment 15,500 19,220 Cash given up 3,720 Part 1 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically...
Carey Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,000. The...
Carey Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,000. The balance in Accumulated Depreciation at January 1 is $40,000. What entry would Carey make to record the sale of the equipment? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Vaughn Co. had a sheet metal cutter that cost $108,000 on January 5, 2016. This old...
Vaughn Co. had a sheet metal cutter that cost $108,000 on January 5, 2016. This old cutter had an estimated life of ten years and a salvage value of $16,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Vaughn also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. (b) Prepare all entries...
Presented below is information related to equipment owned by Whispering Company at December 31, 2017. Cost...
Presented below is information related to equipment owned by Whispering Company at December 31, 2017. Cost $10,350,000 Accumulated depreciation to date 1,150,000 Expected future net cash flows 8,050,000 Fair value 5,520,000 Assume that Whispering will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017. (If no entry is required,...
Presented below is information related to equipment owned by Cullumber Company at December 31, 2017. Cost...
Presented below is information related to equipment owned by Cullumber Company at December 31, 2017. Cost $10,440,000 Accumulated depreciation to date 1,160,000 Expected future net cash flows 8,120,000 Fair value 5,568,000 Cullumber intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,200. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...
Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost  ...
Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost       $10,080,000 Accumulated depreciation to date       1,120,000 Expected future net cash flows       7,840,000 Fair value       5,376,000 Ivanhoe intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,400. As of December 31, 2017, the equipment has a remaining useful life of 5 years.    Prepare the journal entry (if any) to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT