Question

Dansen Co. owns a machine that has an original cost of S120,000, annual straight-line depreciation of S20,000, and it has acc

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Dep for three month = (20000*3/12) = 5000

Book value at the exchange date = 120000-60000-5000 = 55000

Gain (loss) = New assets value-Old asset value

                 = 132500-(77500+55000)

Gain (loss) = 0

So answer is a) $0

Add a comment
Know the answer?
Add Answer to:
Dansen Co. owns a machine that has an original cost of S120,000, annual straight-line depreciation of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A machine cost $1080000, has annual depreciation of $180000, and has accumulated depreciation of $855000 on...

    A machine cost $1080000, has annual depreciation of $180000, and has accumulated depreciation of $855000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $247500, it is exchanged for a machine with a fair value of $1215000 and the proper amount of cash is paid. The exchange had commercial substance The gain to be recorded on the exchange is $0 $67500 $135000 $45000

  • A machine cost $255,200, has annual depreciation expense of $51,040, and has accumulated depreciation of $127,600...

    A machine cost $255,200, has annual depreciation expense of $51,040, and has accumulated depreciation of $127,600 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $102,490, it is exchanged for a similar machine with a fair value of $286,500 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....

  • Ex. 10-134-Nonmonetary exchange cost $140,000, has annual depreciation A machine expense of $28,000, and has accumulated...

    Ex. 10-134-Nonmonetary exchange cost $140,000, has annual depreciation A machine expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,0000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013

  • Ex. 10-134-Nonmonetary exchange. A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated...

    Ex. 10-134-Nonmonetary exchange. A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Instructions Prepare all entries that are necessary at April 1, 2013.

  • A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300...

    A machine cost $228,600, has annual depreciation expense of $45,720, and has accumulated depreciation of $114,300 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $89,470, it is exchanged for a similar machine with a fair value of $280,700 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2021. (Credit account titles are automatically indented when the amount is entered....

  • Layne Co. has a machine that cost $850,000 on March 20, 2014. This old machine had...

    Layne Co. has a machine that cost $850,000 on March 20, 2014. This old machine had an estimated life of ten years and a salvage value of $50,000. On December 23, 2018, the old machine is exchanged for a new machine with a fair value of $540,000. The exchange lacked commercial substance. Layne also received $60,000 cash. Assume that the last fiscal period ended on December 31, 2017, and that straight-line depreciation is used. Show the calculation of the amount...

  • A machine cost $1512000, has annual depreciation of $252000, and has accumulated depreciation of $1197000 on...

    A machine cost $1512000, has annual depreciation of $252000, and has accumulated depreciation of $1197000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $346500, it is exchanged for a machine with a fair value of $1701000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at

  • A machine cost $1032000, has annual depreciation of $172000, and has accumulated depreciation of $817000 on...

    A machine cost $1032000, has annual depreciation of $172000, and has accumulated depreciation of $817000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $236500, it is exchanged for a machine with a fair value of $1161000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at $1139500 $924500. $1053500 $1161000 Cullumber Corporation acquired End of the World Products on January 1, 2020...

  • Caleb Co. owns a machine that had cost $49,600 with accumulated depreciation of $22,000. Caleb exchanges...

    Caleb Co. owns a machine that had cost $49,600 with accumulated depreciation of $22,000. Caleb exchanges the machine for a newer model that has a market value of $59,000. 1. Record the exchange assuming Caleb paid $33,600 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $25,600 cash and the exchange has commercial substance View transaction list View journal entry worksheet No Transaction Credit General Journal Machinery (new) Accumulated depreciation—Machinery (old) Loss on exchange of...

  • 9. Equipment that cost $660,000 and has accumulated depreciation of $300.000 is exchanged for equipment with...

    9. Equipment that cost $660,000 and has accumulated depreciation of $300.000 is exchanged for equipment with a fair value of $480,000 and $120,000 cash is received The exchange lacked commercial substance. The gain to be recognized from the exchange is A) $48,000 B) $60,000 C) $180,000 D) $240,000

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT