What is the value to be recorded as the cost

Assignment Help Accounting Basics
Reference no: EM132556897

Question - Maison Co. freight line is a provider of transportation services to Muteti residents.

Included in its balance is land, Buildings and coach equipment. Depreciation is calculated separately for each depreciable item. The following transaction was completed for Maison Co. in the year 2019.

Equipment with an accumulated depreciation of K80, 000 and a cost of K120, 000 was traded for similar new equipment with a cash cost of K186, 000. A trade in allowance was received by Maison Co. on the old equipment and paid the balance in cash.

Required: (show workings clearly)

i. Calculate the book value of the old asset on the date of the transaction.

ii. What is the Gain on Loss on the trade for the old asset?

iii. What is the value to be recorded as the cost for the New Equipment?

Reference no: EM132556897

Questions Cloud

How to calculate the break-even point in units : Lucid Images, How to Calculate the break-even point in units? What will the new break-even point be if fixed costs increase by 10 per cent?
What are essential elements of mission statement : What are the essential elements of a Mission Statement? What is the purpose of a Key Operating Principle?
Make a journal entry or entries to record pension expense : Metlock Company sponsors a defined benefit pension plan for its employees. Make a journal entry or entries to record pension expense
Do you think your tendency to use this distortion : Do you think your tendency to use this distortion is due in part to seeing others do the same thing? If so who in your life has modeled this behavior
What is the value to be recorded as the cost : Maison Co. freight line is a provider of transportation services to Muteti residents. What is the value to be recorded as the cost for the New Equipment
Find the controllable margin and the return on investment : Compute the controllable margin and the return on investment for 2010. Reduce average operating assets by $50,000, with no change in controllable margin.
Information about an ipo : Consider the following information about an IPO. The net proceeds to the issuing firm are $141.75 million. The public offering
Compute the amount of liability for compensated absences : Question - THE CASE OF ABC COMPANY. Compute the amount of liability for compensated absences that ABC Company shall recognize on December 31, 2X16
Determine the product mix that will maximise westclub profit : WestClub Kitchen is experimenting with different vinegars for sale on the domestic market. Determine the product mix that will maximise WestClub profit

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discussion and analysis of management

What types of information must be disclosed in the management discussion and analysis? Explain.

  In what ways does the sarbanes-oxley act of 2002 sox impact

in what ways does the sarbanes-oxley act of 2002 sox impact financial reporting for businesses?does sox place

  Compute the predetermined overhead rates

Compute the predetermined overhead rates that should be used during 2014 in Department A and B. Compute the total overhead cost applied to job 145.

  To compare statement of cash flows reporting under the

to compare statement of cash flows reporting under the direct and indirect methods select direct indirect or both

  Problem related to the inventory valuations

From the e-Activity, examine the costs that Wal-Mart includes in inventory and cost of sales. Defend the three (3) descriptions that Wal-Mart used to classify inventories, and suggest two (2) other descriptions that Wal-Mart could include within t..

  Timeframes and milestones for the audit

Include with your letter the following documents for the management at Apollo Shoes. Please note that there are four parts to this assignment. Outline the timeframes and milestones for the audit.

  Retool overhauls farm machinery and ships to dealers on a

retool overhauls farm machinery and ships to dealers on a consignment basis. in 2006 retool sends refurbished tractor

  Given this scenario a serious disease has broken out on

given this scenario a serious disease has broken out on nacierma that takes the lives of 10 of the population every

  Compute the after tax cash from the contract assuming that

1. company g which has 30 marginal tax rate owns a controlling interest in company j which has a 12 marginal tax rate.

  Determine cost of goods sold

Determine cost of goods sold during the period under a periodic inventory system using (a) the FIFO method, (b) the LIFO method

  Each of these companies has requested a loan of 49970 for 6

plunkett co.herring co.assetscash128100327700receivables222300303600inventories575100512400nbspnbspnbsptotal current

  Calculate the present value of the loan

The present value factor for 5 years at 10% is .6209. The present value of an annuity factor for 5 years at 10% is 3.7908. Calculate the present value of loan

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd