Nonmonetary exchanges for garrison construction

Assignment Help Accounting Basics

Reference no: EM1355919

During the current year, Garrison Construction trades an old crane that has a book value of $80,000 (original cost $140,000 less accumulated depreciation $60,000) for a new crane from Keillor Manufacturing Co. the new crane cost Keillor $165,000 to manufacture and is classified as inventory. The following information is also available.

Garrison Const.
Fair market value of old crane - 72,000
Cash paid - 118,000

Keillor Mfg. Co.
Fair market value of new crane - 190,000
Cash received - 118,000

A - Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Garrison Construction and (2) Keillor Manufacturing.

B - Assuming that this exchange lacks commercial substance for Garrison, prepare the journal entries on the books of Garrison Construction.

C - Assuming the same facts as those in A, except that the fair market value of the old crane is $98,000 and the cash paid is $92,000, prepare the journal entries on the books of (1) Garrison Construction and (2) Keillor Manufacturing.

D - Assuming the same facts as those in B, except that the fair market value of the old crane is $87,000 and the cash paid $103,000, prepare the journal entries on the books of (1) Garrison Construction and (2) Keillor Manufacturing.

Reference no: EM1355919

Questions Cloud

Prepare pension worksheets and journal entries : Prepare a pension worksheet for the pension plan in 2008. Prepare any journal entry(ies) related to the pension plan that would be needed at December 31,2008. Prepare a pension worksheet for 2009 and any journal entry(ies) related to the pension plan..

Basic pre-test or post-test experimental design : In your own words, briefly describe the basic pre-test/post-test experimental design, and illustrate how you could use this method to answer your hypothetical research question(s).

Selecting useful financial ratios : Suppose you are an upper-level manager in a company. Which financial ratios would you consider most useful? Would these ratios be different than the ones you would consider useful as an investor?

Developing a therapy group for girls and boys : You are a counselor who is developing a therapy group for girls and boys ages 10-12. Each group member has a diagnosis of either Conduct Disorder or Oppositional Defiant Disorder and has been selected to participate in a Gifted and Talented progra..

Nonmonetary exchanges for garrison construction : During the current year, Garrison Construction trades an old crane that has a book value of $80,000 (original cost $140,000 less accumulated depreciation $60,000) for a new crane from Keillor Manufacturing Co. the new crane cost Keillor $165,000 t..

How procedure calls go before registers saved in memory : How deep can the procedure calls go before registers must be saved in memory? (That is, what is the maximum number of "active'' procedure calls that can be made before we need to save any registers in memory?)

Elucidate the multiplier concept as it applies in this case : Elucidate the multiplier concept as it applies in this case. Illustrate what are the qualifications and limitations of the multiplier model.

Explain difference to a local investment club gathering : The stock of Lansing Company has a beta of 1.2. Lansing earned an annual return of 14% during a period when the return on the market portfolio was 12.5%.

Explain mabel has balanced the cost against the benefit : Explain Mabel has balanced the cost against the benefit of bringing a lawsuit against Harvey

User Account

All Pages