Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Lively's equipment. Omega Corp will also pay Lively Inc. $30,000 cash. Omega Corp's equipment originally cost $250,000 when it was purchased 2 years ago and currently has $80,000 of accumulated depreciation and an estimated fair value of $230,000. Lively's equipment has a cost of $212,000 and accumulated depreciation of $35,000. The fair value of Lively Inc's equipment is determined to be $260,000.
Required:
A. Prepare the journal entry for Omega Corp assuming the exchange has commercial substance.
B. Prepare the journal entry for Omega Corp assuming the exchange lacks commercial substance.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Lively's ...” 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
Difference between monitor and control project work and direct and manage project work
Answers (1)
White Hat Digital, Inc. starts the year with a credit balance of $3,400 in its Estimated Warranty Payable account. During the year, there were $225,000 in sales and $$5,400 in warranty repair payments.
Answers (1)
Jack works at solar company and has just undergone a performance review. he feels that the process by which the ratings were assigned was unfair. which type of justice is he concerned about?
Answers (1)
Crystal Jongeward stated: ""We review our operations on an ongoing basis. We make adjustments to meet the evolving needs of our customers and run our businesses effectively.
Answers (1)
You work for a food-processing plant that manufactures corn tortillas. You have been asked to review the activities of upstream management to determine if costs can be cut in that area.
Answers (1)
New Questions in Business
Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances.
Answers (1)
Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.
Answers (1)
Niles and Marsha adopted an infant boy (a U. S. citizen). They paid $17,500 in 2016 for adoption-related expenses. The adoption was finalized in early 2017. Marsha received $3,600 of employer-provided adoption benefits.
Answers (1)
Explain briefly why professional certification and membership in professional organizations are important.
Answers (1)
Suppose that Omar's marginal utility for each additional cup of coffee is 5.5 utils per cup no matter how many cups he drinks.
Answers (1)