Exchange lacked commercial substance

Assignment Help Financial Accounting

Reference no: EM13747077

A machine cost $240,000, has annual depreciation expense of $48,000, and has accumulated depreciation of $120,000 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $96,000, it is exchanged for a similar machine with a fair value of $288,000 and the proper amount of cash is paid. The exchange lacked commercial substance.

Prepare all entries that are necessary at April 1, 2015.

Reference no: EM13747077

Questions Cloud

How did lessons learned in the middle east affect terrorism : How did the "lessons learned" in the Middle East affect terrorism and counter-terrorism in other countries, including the United States?

Importance of marketing in organizational success : Write a 700- to 1,050-word paper in which you define marketing. Explain the importance of marketing in organizational success, based on these definitions

Explain the relation of the project management : Competitive wine companies have improved their order systems and are outperforming Grand Wines Ltd in terms of delivery speed, order accuracy, availability of ordered stock and overall customer satisfaction.

Expected return and standard deviation : You have $10,000 for investment. What are the expected return and standard deviation for a portfolio with an investment of $6,000 in asset X and $4,000 in asset Z?

Exchange lacked commercial substance : A machine cost $240,000, has annual depreciation expense of $48,000, and has accumulated depreciation of $120,000 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $96,000, it is exchanged for a similar machine with a fair ..

Conversion costs are added uniformly over production process : The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the..

What is the probability of getting more than 12000 hits : Travelbus is an Internet-based travel agency wherein customers can see videos of the cities they plan to visit. What is the probability of getting more than 12,000 hits

Risks of incurring foreign tax in exporting goods : Assess the risks of incurring foreign tax in exporting goods from the U.S. Based on your assessment, propose a strategy to minimize or eliminate the foreign tax risk.

How revolution affect americans social equality : How did the Revolution affect Americans' expectations regarding individual rights, social equality, and the role of women in American society?

User Account

All Pages