HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost , $550,000) for a molding machine owned by Water Company. The molding machine is carried in Water's Company books at a cost of $240,000 with an accumulated depreciation of $83,000 at the time of exchange. Assume that the fair values of the automobile and the molding machine are $145,000 and $150,000, respectively. In addition, Hot Company paid $5,000 to Water Company to complete the transaction. 1. How much is the gain or loss on the exchange to be recognized by Water Company?

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Q: Hot Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

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A:

Q: previously used piece of machinery is purchased from XYZ company, who has fully depreciated the…

A: As per IFRS 16 PROPERTY PLANT AND EQUIPMENT Here the machine having salvage value of $200,000 was…

Q: COPS Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: 0. The estimated useful life of the machine is 10 years, with no residual value. On the date of the…

A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…

Q: Sullivan Corp. exchanged one of their buildings (Building 24), which, on the date of exchange, has…

A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…

Q: On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of…

A: On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of…

Q: A Corp. sold a machinery to a buyer for P1,900,000 on January 1, 2021. Because of the entity’s…

A: Lease -  Lease agreements are contracts or instruments that transfer property from one person to…

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A: Lease Liability = Present Value of Lease Payments

Q: Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to…

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

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Value of the pickup trucks = Fair value of equipment + Cash paid

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A: The gain on lease back is recognized only to the proportion of rights transferred to buyer(lessor)…

Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…

A: GIVEN   The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…

Q: Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000,…

A: Journal entries are the primary reporting of transactions occurring in the business.

Q: During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

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Q: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

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A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…

Q: Beeman Company exchanged machinery with an appraised value of $3,538,500, a recorded cost of…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

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A: Gain (Loss) on Sale of Equipment = Sale Consideration - (Cost - Accumulated Depreciation)

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A: Cost of old packaging machine= P1,200,000  Depreciation= 50% Market value of the old packaging…

Q: Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to…

A: An entity can purchase of sale of asset in exchange of cash or its own asset or a combination of…

Q: Acme Corp. entered into an exchange transaction with XYZ Co.  Acme gave XYZ used production…

A: Journal Entries: Date  Particulars Debit Credit   Vehicle 1 15,000     Vehicle 2 30,000…

Q: Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

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A: A transaction is assumed to have a commercial substance when the future cash flows will be affected…

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A: Given that, Building 24 Data -   appraised value of building  $1,700,000 cost of building $2,800,000…

Q: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…

A:

Q: Alamos Co. exchanged equipment and $17,000 cash for similar equipment. The book value and the fair…

A: When ever an Equipment has a commercial substance then the Equipment is to be recorded at Fair value…

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Calculate the amount at which Calaveras value the pickup trucks.

Q: Zara corporation decided to exchange its old machine that costs $100,000 with a new one. On January…

A: Correct option is  A. $40,000

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

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A: Calculate the amount at which Calaveras value the pickup trucks.

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A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

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A: In 2022, Leo construction bought a light duty pickup truck having a fair market value of $55,236.…

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A: Recorded value of new Truck = Fair value of the new Truck received  where, Fair value of the new…

Q: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…

A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…

Q: GEE Company and EYCH Inc. decided to exchange machineries on January 1, 2019. The machine of GEE…

A: When it is anticipated that a company's potential cash flows will increase as a consequence of a…

Q: On March 1, 2019, Extreme Company exchanged an old machine having a cost of and accumulated…

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Q: In December 2005, SHOWEE Company exchanged an old machine, with a cost P6,000,000 and 50%…

A: Here discuss about the details of exchange of machinery which can be incurred the exchange price…

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A: Answer -    Step 1 - Calculation of Unrecognized Loss -   Particulars Amount Book value of…

Q: 'he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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A: Correct option: B. Impairment loss of $ 250,000 Incorrect options: A. Impairment gain of $ 550,000…

Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…

A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…

Q: Corning Industries owns a patent for which it paid $77,000. At the end of the current year,…

A: Introduction: Corning Industries hold a patent that costs $77,000 to acquire. At the end of the…

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A: As per IFRS if exchange transaction has commercial substance the asset received is to be recognized…

Q: During the current year, Marshall Construction trades an old crane that has a book value of $90,000…

A:

Q: Jowee Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine…

A: Where an asset is exchanged with another asset and the new assets is expected to have commercial…