A fixed asset with a cost of $21,296 and accumulated depreciation of $19,166 is traded for a similar asset priced at $68,841 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,779, at what cost will the new equipment be recorded in the books? a.$68,841 b.$64,062 c.$66,192 d.$70,971

Q: A fixed asset with a cost of $50,207 and accumulated depreciation of $42,676 is traded for a similar…

A: The Numerical has covered the concept of recognized loss The Book Value of the asset is computed by…

Q: A fixed asset with a cost of $29,006 and accumulated depreciation of $26,105 is traded for a similar…

A: Given that: Cost of fixed asset = $29006 Accumulated Depreciation = $26105 Fair market price of new…

Q: ARLENE Company accounts for noncurrent assets using the cost model. On October 30,2010, Arlene…

A: Loss on disposal: It implies to the loss incurred by the business from the sale of it's asset. It is…

Q: On May 1, 2021, Equipment with a Cost of $50,000 and Accumulated Depreciation of $40,000 is…

A: Depreciation is being charged on cost of fixed assets in order to show reduction or decrease in…

Q: The acquisition of a new machine with a purchase price of $80,545, transportation costs of $9,221,…

A: Asset is the resource owned by an entity which are held for generating future revenues.

Q: Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1,…

A: As per IFRS 5 Non current assets held for sale and discontinued operation The revaluation of asset…

Q: An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual…

A: When the assets are vended at a higher price than its book value, the difference amount is…

Q: A Ltd owns an owner-occupied asset that is measured using the revaluation model. The asset’s…

A: As per revaluation model, The asset is carried at a revalued amount, being its fair value at the…

Q: A fixed asset with a cost of $28,202 and accumulated depreciation of $25,382 is traded for a similar…

A: The cost basis of the new asset is the cost of assets for tax purposes It can be calculated in the…

Q: cost of sao,000 and on which there is accumulated depreciation of s55,000 (nduding deprediion for…

A: Accumulated Depreciation: It is depreciation expenses that get cumulative till the end of the life…

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…

Q: A building with an appraisal value of $132,577 is made avaitable at an offer price of $159,843. The…

A: 1. Appraisal value = 132,577 2.offer price = 159,843   The cost of building to be recorded   Cash…

Q: A non-current asset has a carrying amount of GHS 20,000. It could be sold for GHS 18,500 with…

A: Given: Non current assets sold for = GHS 18,500Selling cost =GHS 500Value in use=GHS 22000

Q: On February 14, 2022, Frozen Company classified a non-current asset as held for sale. At that time,…

A: As per IFRS 5 when an asset is calssifed as a non-current asset as held…

Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…

A: The asset is considered as something that an investor buys with an intention of making income from…

Q: - Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase…

A: Net purchase price = Gross price - trade discount = 800,000 - 10,000 = 790,000

Q: A fixed asset with a cost of $54,589.00 and accumulated depreciation of $46,400.65 is traded for a…

A: The correct option is $2,248.35.

Q: The assets and liabilities of ABC were summarized as follows: Cash P66,000; Inventories P198,000;…

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: A fixed asset with a cost of $28,567 and accumulated depreciation of $25,710.30 is sold for…

A:

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: The equipment is measured at the fair value as on the date after deduction of costs if any.

Q: How much should be recorded as the purchase price of the individual PPE items: 5. The old equipment…

A: Since the exchange will not impact the future cash flows, the exchange does not have any commercial…

Q: On July 1, 2021. A exchanged its non-monetary asset (equipment) with B's non-monetary asset…

A: Calculation of the  cost of new asset of A:: When the transaction lacks commercial substance then…

Q: The acquisition of a new machine with a purchase price of $96,072, transportation costs of $7,638,…

A: Machinery is a non-current fixed asset used by the company on its factory floor in the manufacturing…

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…

Q: The ABC Company accounts for non-current assets using the cost model. On July 20, 2021, ABC Company…

A: As per PFRS 5, Non-current assets are held for sale and discontinued operations, On classifying a…

Q: A fixed asset with a cost of $32,265 and accumulated depreciation of $29,039 is traded for a similar…

A: Fixed assets refer to the assets with a considerably longer useful life as compared to current…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: As IFRS 5 assets held for sale shall be valued at lower of carrying amount or fair value less cost…

Q: A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar…

A: Correct option is $38742

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…

A: In a situation where commercial substance exists, any gain or loss on exchange of assets shall be…

Q: Numbers 7 and 8 Below is the information relative to an exchange of asset by Mimi Bernan Company.…

A: As per IAS 16,Property,plant and equipment  If purchase of asset is made partly  for cash and partly…

Q: Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the…

A: Gain or (Loss) = Market value of assets received - (Book value of asset exchanged + Cash paid)

Q: Foxtrot Co, exchanged equipment and $17,100 cash for similar equipment. The book value and the fair…

A: As per IAS 16 of property plant and equipment of international financial reporting standards.  If…

Q: The gain to be recognized from the exchange

A: Book value = cost-accumulated depreciation  = 600000-475000 = 125000 Fair value =…

Q: Madison Company acquired equipment on January 2, Year 1, at a cost of $20 million. The equipment has…

A: Depreciation expense under U.S GAAP(Background) :  .           Under generally accepted accounting…

Q: Equipment that cost $656000 and has accumulated depreciation of $286000 is exchanged for equipment…

A: Accumulated depreciation is the total depreciation charged on the asset up to the current accounting…

Q: How is 165,000 computed for the additional accumulated depreciation?   Trade in Allowance…

A: solution the original cost of Turf cutter    =1300000 date of purchase              =January 1 2018…

Q: A fixed asset with a cost of $41,000 and accumulated depreciation of $36,000 is traded for a similar…

A: Fixed asset exchange is a regular commercial transaction. Fair value should be applied to exchanges…

Q: 7. Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September…

A: As per IFRS 5 Non current assets held for sale,  If an asset is measured as per revaluation model…

Q: 11) Equipment that cost $1,400,000 and has accumulated depreciation of $600,000 is exchanged for…

A: The new assets received in exchange of old assets are recorded at the fair market value. The gain or…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $84,000 and…

A: In case of lack of commercial substance , the gain is recognized in proportional manner and total…

Q: Recording Asset Exchanges Minneapolis Inc. has equipment with an original cost of $52,500 and…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the…

A: Introduction Impaired loss=Carrying amount-Fair value

Q: Lei Company acquired a financial asset at its market value of P4,800,000. Broker fees of P300,000…

A: 1. The fair value of financial asset would be recognized for $4,800,000.

Q: MNO Ltd adopts fair value for subsequent measurement of its intangible assets. An intangible with an…

A: As per IAS 38  intangible asset is an asset that doesn't have a physical existence and It is…

Q: with carrying amount of P1,000,000 as noncurrent asset held for sale. All the conditions in PFRS 5…

A: The equipment will be recorded ar its fair value less cost to sell i.e. At net realizable value. In…

Q: ompany which prepares financial statements to 31 December classifies a non-current asset as held for…

A: The amount by which the carrying value of an asset or a cash-generating unit exceeds its recoverable…

Q: On April 30, 2020, Mindful Company classifies a property in Southern Tagalog as held for sale. The…

A: Solution Concept The asset is impaired when Carrying value > recoverable amount Recoverable…

Q: A fixed asset with a cost of $28,000 and accumulated depreciation of $25,200 is sold for $4,760.…

A: Net Book value of the fixed assets = Cost - accumulated depreciation  = $28,000 - $25,200 = $2,800