In Case B, Pensacola would record a gain/lloss) of. O $4,000. 0 (54,000. O ($10,000) O None of these answer choices are correct.
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- Help Save & Ext Su Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has cormmercial substance. Old Equipment Cash Book Value Fair Value Received Equipment A Equipment B $74,500 $81,600 $56,000 $12,300 $60,800 $ 9,600 For Equipment B, Pensacola would record a gain/(loss) of: DO Multiple Choice O $3,300. $14.800) ( Prev 6 of 15 Next>How much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.
- Below is the information relative to an exchange of assets by Oriole Company. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid Case | $464000 $512000 $87500 Case II $287000 $253500 $41100 Which of the following would be correct for Oriole to record in Case II? Record Equipment at: Record a gain (loss) of: Select answer from the options below $294600 $(33500) $287000 $(7600) $328100 $33500 $287000 $7600Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of 12,000. The asset given up by Life Co. has a book value of 20,000. Cash of 4,000 is received by Life Co. What amount should Love Inc. record for the asset received? A. 20,000 B.19,000 C.16,000 D. 23,000Q A company exchanged old equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively. Assuming that the exchange lacks commercial substance, the company would record a gain(loss) on exchange of assets in the amount of: Multiple Choice $8,000. ($8,000). $26,000. $0.
- question 6 Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Equipment given up: Clark Co. Keys Inc. Accumulated depreciation Equipment (original cost) $54,000 $63,000 18,000 21,600 32,400 43,200 (10,800) 10,800 Fair value Cash exchanged Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. Exchange has Commercial Substance Exchange Lacks Commercial Substance a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. a. Account Name Dr. Cr.On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of theexchange are as follows:Robers’ Asset Phifer’s AssetOriginal cost $120,000 $140,000Accumulated depreciation 55,000 63,000Fair value 75,000 70,000To equalize the exchange, Phifer paid Robers $5,000 in cash.Required:Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.
- Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were associated with this acquisition: Carrying Fair value amount Accounts receivable Inventory Government contract Equipment Short term loan payable 2,000,000 1,000,000 2,000,000 500,000 1,000,000 500,000 (2,000,000) 20,000,000 400,000 (oo0'0000) 1,400,000 Net assets The fair value associated with the acquired entity's government contract is not based on any legal or contractual relationship. In addition, for obvious reason, there is no open market trading for an intangible of this sort What is the goolwill arising from the acquisition?Foxtrot Co. exchanged equipment and $17,100 cash for similar equipment. The book value and the fair value of the old equipment were $81,000 and $91,700, respectively. Assuming that the exchange lacks commercial substance, Foxtrot would record a gain/(loss) on exchange of assets in the amount of: Multiple Choice $(10,700). $0. $10,700. $27,800.Item 22 Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid $ 49,700 $ 60,500 $ 14,100 The company would record the new equipment at:
