Entries for trade of fixed asset

Reference no: EM131121482

Entries for trade of fixed asset

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $220,000. Twin Pines received a trade-in allowance (fair market value) of $45,000 on the old equipment of a similar type and paid cash of $175,000. The following information about the old equipment is obtained from the account in the equip- ment ledger: cost, $180,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $120,000; annual depreciation, $12,000. Assuming the exchange has commercial substance, journalize the entries to record (a) the current depreciation of the old equipment to the date of trade-in and (b) the exchange transaction on July 1.

Reference no: EM131121482

Questions Cloud

Information on styles of leadership : Select 2 well-known leaders (alive or not), and search online for information on their styles of leadership. Then write a compare/contrast paper on the two.

Strategic options for under armour : This is the instruction for the whole group. You will be developing strategic options for "Under Armour" Case 20. You will use the strategic audit using your text(Strategic Management and Business Policy For Management and Economics 14th Ed) (Fig..

Marketing metrics presented : Pick any two of the marketing metrics presented in the chapter. For each, pick any brand or product and discuss how each of those brands or products would benefit from the application of each of the marketing metrics you selected. That is, what will ..

Activity-On-Node project-What is the critical path : Consider the following Activity-On-Node (AON) project (activity completion times are in days). 1) Refer to the figure. What is the critical path?

Entries for trade of fixed asset : On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $220,000. Twin Pines received a trade-in allowance (fair market value) of $45,000 on the old equipment of a similar type and pai..

Determining the project management : Many of you may believe that you have never worked in project management, but in reality, most of you have already at some point in your life. Think back to a time when you organized a key event (e.g., birthday parties, weddings, yard projects, ho..

Analyse the difference between a hazard and risk : HLT51612 DIPLOMA OF NURSING. Maintaining safety and security in the workplace is a legal obligation. Proper preparation of your work environment is important to avoid risks and injuries. Analyse the difference between a hazard and risk and create a..

Show how current news story-event relates to ethical issue : Search for a current (no more than two months old) news story (article, other piece of writing, or video clip) that examines an ethical issue touched on in the Module 6 readings or discussion. Alternatively, you may search for a current event that..

Evaluate transfer pricing system : Mississippi Company has two decentralized divisions, Illinois and Iowa. Illinois always has purchased certain units from Iowa at $60 per unit. Because Iowa plans to raise the price to $80 per unit, Illinois is considering buying these units from ..

User Account

All Pages