Company exchanged an old forklift with an original cost of
$20,000, accumulated depreciation to date of...
Company exchanged an old forklift with an original cost of
$20,000, accumulated depreciation to date of $15,000, and a fair
value of $6,000. The new forklift list price is $25,000. A trade-in
allowance of $7,000 was given for the old forklift.
Which of the following is the correct journal entry to record
the exchange?
Select one:
a. New Equipment 23,000
Accumulated Depreciation 15,000
Old Equipment 20,000
Cash 17,000
Gain on Disposal 1,000
b. New Equipment 38,000
Old Equipment 20,000
Cash...
Company exchanged an old forklift with an original cost of
$20,000, accumulated depreciation to date of...
Company exchanged an old forklift with an original cost of
$20,000, accumulated depreciation to date of $15,000, and a fair
value of $6,000. The new forklift list price is $25,000. A trade-in
allowance of $7,000 was given for the old forklift.
Which of the following is the correct journal entry to record
the exchange?
Select one:
a. New Equipment 23,000
Accumulated Depreciation 15,000
Old Equipment 20,000
Cash 17,000
Gain on Disposal 1,000
b. New Equipment 38,000
Old Equipment 20,000
Cash...
Unipal Company exchanged an old forklift with an original cost
of $20,000, accumulated depreciation to date...
Unipal Company exchanged an old forklift with an original cost
of $20,000, accumulated depreciation to date of $15,000, and a fair
value of $6,000. The new forklift list price is $25,000. A trade-in
allowance of $7,000 was given for the old forklift.
Which of the following is the correct journal entry to record
the exchange?
Select one:
a. New Equipment 38,000
Old Equipment 20,000
Cash 18,000
b. New Equipment 23,000
Accumulated Depreciation 15,000
Equipment 20,000
Cash 18,000
c. New Equipment...
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?
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
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...
Willis Bus Service traded in a used bus for a new one. The
original cost of...
Willis Bus Service traded in a used bus for a new one. The
original cost of the old bus was $54,900. Accumulated depreciation
at the time of the trade-in amounted to $35,500. The new bus cost
$79,500 but Willis was given a trade-in allowance of $10,800.
a. What amount of cash did Willis have to pay to acquire the new
bus?
b. Compute the gain or loss on the disposal for financial
reporting purposes.
DR.
CR.
Accounts Payable
26,000
Accounts Receivable
57,000
Accumulated Depreciation – Equipment
40,000
Depreciation Expense
13,000...
DR.
CR.
Accounts Payable
26,000
Accounts Receivable
57,000
Accumulated Depreciation – Equipment
40,000
Depreciation Expense
13,000
Sales Revenue
250,000
Cash
25,000
Common Stock
50,000
Equipment
150,000
Investment in Debt Securities
45,000
Freight-out
5,000
Insurance Expense
2,500
Salaries and Wages expense
30,000
Rent Expense
20,000
Sales Discount
8,000
Retained Earnings
25500
Prepaid Insurance
7,500
Sales Return and Allowance
12,000
Gain on Disposal of Plant Asset
6,000
Dividends
7,000
Interest Expense
7,500
Salaries and Wages Payable
2,500
Income tax Expense
6,500
Advertising...
Iniesta Company traded machinery with original cost of $220,000
and accumulated depreciation of $30,000. It received...
Iniesta Company traded machinery with original cost of $220,000
and accumulated depreciation of $30,000. It received in exchange
from Xavi Company a machine with a fair value of $200,000. Iniesta
also paid cash of $20,000 in the exchange. Xavi’s machine has a
book value of $190,000. What amount of gain or loss should Iniesta
recognize on the exchange assuming the transaction lacks commercial
substance?
i know the answer, but please explain.