The motorcoach will be traded for a limousine owned by

Reference no: EM13578575

Cuomo touring company owns a luxary motor coach it uses in long distance tours. The motor coach originaly cost the company $685,000 and depreciation taken to date amounts to $274,000. Coumo is considering several alternative methods of disposing of the motorcoach and is concerned about the financial statement impact. The alternative methods of disposal available are as follows. (treat each alternative independently)

1) The motorcoach will be sold for $365,000 cash

2) The motor coach will be exchanged for a stock investment in recreation, LTD. The value of the stock is estimated at $425,000

3)The motorcoach will be traded in on a new model valued at $925,000. A trade in allowance of $400,000 will be granted by the manufacturer with the balance paid in cash.

4)The motorcoach will be traded for a limousine owned by Barton Company. In exchange for the motorcoach, Barton will give Coumo touring company $60,000 cash, a three year $340,000 note with aface rate of 8%, and the limousine. The motor coach has an appraised value of $450,000 but fair market value of the limousine is not clear.

Question:

A)Determine the amount of gain or loss to be recognized in each of the alternatives

B)Make the journal entries to record the events above

Reference no: EM13578575

Questions Cloud

Finnie companys management believes that every 5 increase : finnie companys management believes that every 5 increase in the selling price of one of the companys products results

Sales are collected 75 in the month of sale and 25 in the : ace inc shows a cash balance of 24000 on january 1 2008. the expected sales in units of its product by month for the

If you were to take a sample of 25 students what is the : facebook reports that the average number of facebook friends worldwide is 175.5 with a standard deviation of 90.57.

Suppose that y1 and y2 are random variables from population : question suppose that y1 and y2 are random variables from population with mean micro and variance sigma2. suppose we

The motorcoach will be traded for a limousine owned by : cuomo touring company owns a luxary motor coach it uses in long distance tours. the motor coach originaly cost the

Castle company produces throw blankets that are popular : castle company produces throw blankets that are popular holiday gifts. standard variable costs relating to a single

This measure of reproductive rate is normally distributed : a a conservationist is interested in knowing whether polar bears in the wild have lower rates of reproduction than

Eeryone knows that a is the best shot and always hits the : three contestants a b and c each have a balloon and a pistol. from fixed positions they fire at each others balloons.

Assume that the mean score on a certain aptitude test : assume that the mean score on a certain aptitude test across the nation is 100 and that the standard deviation is 20

User Account

All Pages