Zhane Company exchanged a car from its inventory for a computer system to be used in its technological upgrading project. The following information relates to this exchange that took place on July 16, 2021. Listed selling price of the car-900,000 FV of the computer system-860,000 Carrying amount of the car-600,000 If Zhane Company recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction? 100,000 260,000 140,000 Cannot be determined
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Listed selling price of the car-900,000
FV of the computer system-860,000
Carrying amount of the car-600,000
If Zhane Company recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction?
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- Line Company exchanged a car from its inventory for a computer system to be used in its technological upgrading project. The following information relates to this exchange that took place on July 16, 2021.Listed selling price of the car-900,000FV of the computer system-860,000Carrying amount of the car-600,000If Line Company recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction?Kiko group of companies exchanged a car from its inventory for a computer system to be used in its technological upgrading project. The following information relates to this exchange that took place on July 16, 2021.Listed selling price of the car-90,000FV of the computer system-86,000Carrying amount of the car-60,000If Kiko group of companies recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction21.Zhane Company exchanged a car from its inventory for a computer system to be used in its technological upgrading project. The following information relates to this exchange that took place on July 16, 2021.Listed selling price of the car-900,000FV of the computer system-860,000Carrying amount of the car-600,000If Zhane Company recognized a gain on this exchange of P160,000, how much was the amount paid to complete the transaction? a. 100,000 b. 260,000 c. 140,000 d. Cannot be determined
- Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The following information relates to this exchange: Carrying amount of the car, 600,000List selling price of the car, 900,000’ Fair value of the computer, 860,000’; Cash difference paid by Caine, 100,000. What is the cost of the computer acquired in exchange?Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The following information relates to this exchange: Carrying amount of the car, 600,000List selling price of the car, 900,000’ Fair value of the computer, 860,000’; Cash difference paid by Caine, 100,000. What is the cost of the computer acquired in exchange? 1. Indicate the appropriate entries requires for each of the transactions. 2. Will Caine company declare a gain or loss on this transaction?In 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?
- Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine has a estimated fair market of $36,000. The transaction has commercial substance. Regarding the journal entry to record the exchange, what value will be assigned to the delivery truck? O 36,000 O 44,000 O 54,000 O 34,000 Question 17 The cost of training employees to operate newly acquired machinery are usually capitalized as part of the acquisition value of the asset. O TrueOn 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. P150,000A company exchanged equipment from inventory for a car to be used as long-term asset. The following information relates to this exchange: Carrying amount of the equipment 600,000 List selling price of the equipment 900,000 Fair value of the car 860,000 Cash difference paid by A company 100,000 What amount of gain should be recognized on the exchange? a. 0 b. 200,000 c. 260, 000 d. 160,000
- On December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?Show your computation Khong Guan has negotiated the purchase of a new piece of automatic equipment at a price of HK$7,000 plus trade-in, f.o.b. factory. Yintang paid HK$7,000 cash and traded in used equipment. The used equipment had originally cost HK$62,000; it had a book value of HK$42,000 and a secondhand fair value of HK$45,800, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of HK$1,100. Instructions Prepare the general journal entry to record this transaction, assuming a. the exchange has commercial substance. b. the exchange is without commercial substanceCarolina Co. purchased a machine at a cost of $780,000 on January 1, 2016. On January 1, 2021, the balance of the Accumulated depreciation account on this old machine is $320,000; On that day, Carolina exchanged this old machine for a new machine (the transaction has commercial substance) which has a market value of $432,000. In addition, Carolina received $48,000 cash in the exchange. Instructions (1) Prepare all the necessary journal entries for Carolina Co. on January 1, 2021. (2) Now, assume that the transaction lacks commercial substance and prepare all the necessary journal entries on January 1, 2021.