In December 2005, SHOWEE Company exchanged an old machine, with a cost P6,000,000 and 50% depreciated, for a dissimilar used machine and paid a cash difference of P1,500,000. The fair value of the old machine was determined to be P2,000,000. SHOWEE should record the machine at O 6,000,000 3,500,000 3,000,000
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- In December 202, Angelyn Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine and paid a cash difference of P500,000. The fair value of the old machine was determined to be P1,800,000. Angelyn Company should record the machine atIn October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for a dissimilar used machine and paid a cash difference of P32,000. The market value of the old packaging machine was determined to be P140,000. How much is the cost of the newly acquired machine and the amount of gain or loss, respectively, that Dean should record on this exchange?On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50% depreciated, for another used machine and paid a cash difference of P 160,000. The fair value of the old machine was determined to be P 700,000. Prepare the journal entry to record the exchange:
- In June 2023, Plane Company exchanged an old packaging machine, which had a cost ofP1,200,000 and was 50% depreciated, for a non-monetary asset. The market value of the old packaging machine was determined to be P700,000. What is the cost of the new asset acquired?Jowee Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine and paid a cash difference of P500,000. The fair value of the old machine was determined to be P1,800,000. What amount should be recorded as cost of the machine received in exchange? A. 1,800,000 B. 2,300,000 C. 1,300,000 D. 2,000,000On March 1, 2019, Extreme Company exchanged an old machine having a cost of P450,000 and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d. P150,000
- Willis Company trades in a printing press for a newer model. The cost of the old printing press was $62,000, and accumulated depreciation up to the date of the trade - in is $46,000. The company also pays $45,000 cash for the newer printing press. The fair market value of the newer printing press is $70,000. The journal entry to acquire the new printing press will required a debit to Printing Press for: A. $45,000 B. $108,000. C. $70,000. D. $62,000Zara 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 O Loss $65,000 No gain or Lss Back Next Page 11 of 12In 2015, DimDung Company acquired production machinery which now has a book value of ¥745,000. The discounted future cash flows from use of the machinery is ¥400,000 and its fair value less costs to sell is ¥350,000. DimDung has determined that an impairment loss has occurred. What is the carrying value of the machinery after the journal entry to record the impairment loss has been recorded under IFRS? Group of answer choices ¥400,000 ¥395,000 ¥345,000 ¥350,00
- Fenner Co. purchased a lathe machine for $72,000 on January 5, 2013. This (old) lathe had an estimated life of ten years and salvage value of $12,000. On April 3, 2020, the old lathe was exchanged for a similar lathe (in an exchange with no commercial substance) with a list price of $45,000. Fenner also paid $9,000 cash. The old lathe had a fair market value of $34,000 on April 3, 2020. Assume that the last fiscal period ended on December 31, 2019, and that straight-line depreciation is used on the basis of nearest full month. Compute the book/carrying value of the old lathe on April 3, 2020. Compute the gain (loss) on disposal booked by Fenner Co. on April 3, 2020. Prepare the journal entry made by Fenner Co. on April 3, 2020, to record the exchange of assets. Now assume that the fair market value of the old lathe on April 3, 2020, is $26,000 instead. Compute the gain (loss) on disposal booked by Fenner Co. on April 3, 2020.Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business Solutions Inc. The exchange has commercial substance. IPI’s used machine has a book value of $8,000 (original cost $12,000 less $4,000 accumulated depreciation) and a fair value of $6,000. The new machine has a fair value of $16,000. IPI also pays Jerrod Business Solutions $7,000 cash in the transaction. Accounting Issue(s): What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions? Question 1: What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions? $6,000 $7,000 $8,000 $13,000 $15,000 $16,000BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000. The equipment was traded in for a new machine from a dealer company that had a list price of P800,000; however, the new machine could be purchased without trade in for P780,000 cash. BTS Company paid P500,000 cash in the exchange.Determine the following: (1) Initial cost of the newly acquired equipment(2) Gain or loss on exchange