Equipment that cost $387,400 and has accumulated depreciation of $312,900 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance.
A) Calculate the gain to be recognized from the exchange.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Equipment that cost $387,400 and has accumulated depreciation of $312,900 is exchanged for equipment with a fair value of $160,000 and ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
You want to have $25,000 in your savings account eight years from now, and you're prepared to make equal annual deposits into the account at the end of each year. required: if the account pays 4.
Answers (1)
On December 31, Rivera Company receives a utility bill in the mail for $440. Rivera Company intends to pay the bill in early January of next year.
Answers (1)
An additional cost incurred only if a company pursues a particular course of action is a (n) :
Answers (1)
1. If the spot rate for the Swiss Franc is that 1.15 SF is equal to1 US $, and the annual interest rate on fixed rate one-year deposits of SF is 1.5% and for US$ is 2.
Answers (1)
Over the past year, Eli has been working very hard. His employer has taken notice and is giving Eli a 6% raise in salary. During this past year, overall prices in the economy have increased by 4%.
Answers (1)
New Questions in Business
Pinto Corp. sells $300,000 of bonds to private investors. The bonds have a 4% coupon rate and interest is paid semiannually. The bonds were sold to yield 5%. What periodic interest payment does Pinto make to its investors? A. $6,000 B. $5,000 C.
Answers (1)
Unearned Rent Revenue is A. a revenue account. B. reported as a current liability. C. a contra account to Rent Revenue. D. debited when rent is received in advance.
Answers (1)
Lagos in the 20th century and Accra in the 21st century began benefitting from a new source of international earnings that enriched each nation's economy. What industry was responsible for those new earnings?
Answers (1)
Vineyard Corporation, a manufacturer of fine wines, began the year with 20,000 bottles in inventory. The company estimated the budgeted sales for the four quarters of the current year to be 200,000 bottles, 150,000 bottles, 250,000 bottles, and
Answers (1)
Chegg "Thurman Corporation issued 500,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $2.5 per share. During the first year of operations, the company earned $180,000 and declared a dividend of $45,000.
Answers (1)